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Foreign Market Entry and Diversification - Assignment Example

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The author of the "Foreign Market Entry and Diversification" paper describes the identification and discussion of the trends in the global beer markets, international expansion trends, and Modelo’s internal expansion, and identifies the challenges from InBev…
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Foreign Market Entry and Diversification
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Download file to see previous pages In 1990 a completely new trend was found as the domestic companies began to expand their business in a foreign market. Belgian company would be a great example as the company acquired breweries in 20 different countries. In 2004 two of the biggest breweries in the world, Interbrew and AmBev decided to merge with each other and the largest brewery in the world was created. This merger and acquisition strategy became a popular trend and it is reflected from the list of the top breweries which include SABMiller, Anheuser-Bush and InBev.

However, some of the recent trends have prompted the prediction that consumption of beer will go down in some of the European countries like France, Spain, and Germany. The threat of such a consequence has forced many companies to focus on the emerging markets like those of Asian countries where people are likely to spend a large sum of money on the consumption of beer and other alcohol. People in Sweden and the UK are found to shift their inclination from wine. Russia might emerge as the biggest market of beer since consumers there are found to accept beer more readily than vodka. It is quite evident from the graph given below that China is likely to see a sharp rise in beer consumption by the end of 2012. Poland, Romania, and Ukraine are also expected to experience a significant increase in beer sales. It was observed that in 2008 there was a 10% growth in the beer market of Romania (Ulstein, April 2009).

The most recent trend in the beer industry is to market it as a drink that has some functional benefits. In 2008 several varieties of beer were launched in Germany with a health theme. A perfect example would be Veltins V+ which was sold under the theme of Apple juice.

As far as beer consumption trend is concerned, ‘consuming beer while cooking’ is a growing trend among the consumers. People enjoy combinations like pizza with beer or beer with beef dishes. ...Download file to see next pagesRead More
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