2 - Term Paper Example

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Term Paper 2 Executive Summary This term paper will reflect the strategic issues related to the business operations of the Grupo Modelo. In the first part of the project, an overview of the top brand of the company ‘Corona Beer’ will be provided (as given in the case study) followed by the SWOT analysis and the industry analysis of the company…
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Download file to see previous pages Table of Contents Table of Contents 3 Introduction 4 Analysis 5 SWOT Analysis 5 Porter’s Five Forces Analysis 7 Staying Power 9 Summary and Conclusion 12 Works Cited 13 Name of the Student: Name of the Professor: Course Number: Date of the Paper: Strategic Analysis of Corona Beer Introduction This study has chosen Grupo Modelo in order to analyse the case study. In the first part of the study, the company overview will be provided followed by some information on its top brand ‘Corona Extra’. Grupo Modelo- Company Overview Grupo Modelo is a big and well known brewery company in Mexico. It was established in the year 1925. It alone holds 63 percent of the beer market in Mexico and exports its products to United Kingdom and United States. It has a joint venture with a company named Molson Coors Brewing Company UK Ltd. It exports mainly the Corona, Pacifico and the Modelo brands. Among them Corona Extra is one brand which is the fourth largest selling beer in respect of the volume. It is one of the leading brands sold worldwide. In the United States, the Corona Extra is at the top among the imported beers. Analysis SWOT Analysis Swot analysis is an important tool for strategic planning (Boone, and Kurtz 46; Ferrel, and Hartline 122). It helps in decision making after understanding the dependency and the relationship between a particular company and its environment (Pahl, and Richter 27). This business planning tool helps to overcome the threats and the weaknesses. It is one of the traditional methods of strategic management. Strength The top brands of Grupo Modelo have huge demand in the domestic as well as the international market. Corona Beer, which is one of the leading brands of the company, is the fourth largest selling beer in respect of the volume. The company leads the beer market in Mexico and hence enjoys the market share leadership. It possesses cost advantage due to the large volume of production. The leading position in the beer market not only enhances the sales of the company, but also strengthens its financial position. It has a strong management team which has a positive impact on the performance of the company. The overall unit cost of the products of the company is lower as compared to the competitors which help them to achieve competitive advantage in the market. The strong tradition that is followed while providing services attracts the customers and the quality of the services provided helps in retaining these customers and achieve success in the market. Weakness One of the main weaknesses of the company is that most of its brands are manufactured for the domestic market in Mexico. The company has lesser number of brands serving the customers in the international market. The company should make efforts to increase the brands delivered in the global market apart from serving as a leader in the Mexican market. The company has not performed much product innovation in the past few years. The changing tastes of the customers might result in losing them. Opportunity The company has the opportunity to expand its operations in new market segments. The expansion of the services in new and international markets will lead to a rapid increase in the growth of the company. It also possesses the opportunity to introduce some more products and expand its product line in order to accommodate with the changing tastes and preferences of the customers. It has the ...Download file to see next pagesRead More
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