Case Study 3 - Case Study #3 Corona Beer: From local...

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Case Study #3 Corona Beer: From local Mexican Player to a Global Brand The global beer industry continues to be extremely competitive, most large companies have multiple private label brands to address different tastes and needs throughout the world. The industry continues to face large challenges from local governments who are imposing strict rules and taxes for companies looking to do business in their country. The economy has changed the global beer industry’s profitability, as exchange rates continue to fluctuate; companies are trying to figure out ways to reduce operating expenses to offset the decline in exchange rate. There is also a need to expand into new markets and understand the needs of that market to be successful. Existing markets are almost to the saturation point and slow growth will be experienced for companies who don’t look to diversify. The beer industry has to continue to identify new markets, and how it can establish itself in those markets. Some questions need to be asked before entering new markets. Is their population growth? Is there an infostructor in place to support the industry? Is their availability of raw materials? There are markets out there that have not been tapped, but this industry needs to understand them before entering. Experienced people are also important for this industry to continue to be successful. The beer industry was created by local people who had a passion for creating a unique product, as the industry grew this passion has remained. The industry has to continue to cultivate this passion and give opportunities to people who want to succeed. Companies who look to diversify like Grupo Modelo (into a joint venture with Nestle’ for kids water production) will be able to better ride out any economic issues that continue to arise. This gives the company the ability to weather any uncertainties.
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Grupo Modelo is positioned very well in the industry. It is the #2 selling imported beer in the US
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This note was uploaded on 10/16/2011 for the course BUSINESS 421 taught by Professor ?? during the Spring '10 term at Thomas Edison State.

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Case Study 3 - Case Study #3 Corona Beer: From local...

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