Corona Beer

In: Business and Management

Submitted By nimmiw
Words 2482
Pages 10
Corona Beer: Challenges of International Expansion Corona Extra has been the world’s fourth best selling beer in terms of volume in 2005 due to its strategy in differentiation. Corona marketing campaign of “fun in the sun” and its light and citrus flavor helps products to expand its target customers far beyond its competitors. However due to merger and acquisition that occur in the industry, Corona needs to adjust itself in order to sustain its growth and improve its competitive position.
Environmental Analysis
PEST Analysis
Political Factor: * Government regulation prohibits to import alcohol product in some country. * Tax policies on alcohol beverages may result in higher price of alcohol product in some countries. Economic Factor * Trading agreement such as NAFTA, can help firm to benefit from exports its products into the emerging market, however this might also open up the opportunities for new competitors to come into Mexico‘s beer market as well. * Instability of Mexico economic condition can affect the cost of goods sold of the products that export out of the foreign markets.
Social Factor * Some countries or areas might prohibit to sell alcohol beverages. * Differentiation between global preferences. For example, beer might be popular in US and Germany, however in Italy and France, wine is more popular. Technological Factor * Technology can improve product quality and can reduce scrap or it can also improve distribution system with GPS or fleet control program.
5-Force Analysis Rivalry (High Threat) * There is competition from both domestic products and import products as well as threat from merger and acquisition which large company may dominate the industry as they might gain advantages from cost efficiency and market share after merging.
New Entrants (Low Threat) * There is low threat from emerging…...

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