Anheuser-Busch InBev: Global Company Needs to ‘Craft’ Local Focus

Anheuser-Busch InBevA corporate strategy article by Thunderbird students Andrea Bly, Sangeetha Nagaratnam, Joseph Rosing, David Roudybush and William Todd

Can, or even should, the global leader in brewing take on the numerous craft beer companies, whose sole focus is on satisfying the unique tastes of their local customers?

Blame the Carmel Macchiato. Or maybe the Mocha Frappuccino. I am not sure exactly when the tipping point struck, but at some time post-millennium, the U.S. society morphed into an environment where consumers attempt to display individualism through their sophisticated and differentiated purchases. Accordingly, companies were anxious to provide expanded and unique assortment to meet the evolving consumer demand. Starbucks now has 87,000 different combinations of drinks, which dwarfs the 31 flavors of Baskin Robbins that offered significant variety for many generations of Americans. [1]

Battle for World Beer Dominance: SABMiller Enters Brazil

ebay in ChinaA corporate strategy article by Thunderbird students Joel Baughman, Srinivas Chundi, Mikhail Kholyavko, Chintan Patel and Chris Vadner

There are striking similarities between the colonial powers of past and contemporary beer conglomerates. For years, there has been an uneasy quiet in the world beer markets as brewers have carved out territories and regions for themselves, often finding themselves in close proximity with competitors. Until now, they have appeared reluctant to disturb the status quo and encroach on competitors’ turf in pursuit of increased market share. Nevertheless, consolidation has accelerated in recent years, leading to high industry concentration. The growth in demand for beer in emerging markets, coupled with saturation and stagnation in developed markets, promises to unsettle this uneasy calm and force brewers to rethink their strategy. As these large conglomerates come under increasing pressure from restless investors looking for revenue and profit growth, any gentleman’s agreement that might exist is less likely to be honored in the future. Major players are poised to engage in full-blown competitive conflict in order to conquer new markets.

Subscribe to RSS - Beer