Management: Strategic Decision Making in a Global Business Setting - Assignment Example

0. Grupo Modelo is a Mexican beer manufacturer and distributor that was founded in 1922. The company started out with a vision to supply the local Mexican marketplace, but due to the quality of their products the firm was able to expand internationally. The five top beer products of the company are Corona Extra, Corona Light, Modelo Especial, Pacifico Clara y Negra Modelo. In Mexico Grupo Modelo is part of a duopoly market structure. Its most successful brand is Corona. This beer became the top importer beer in the United States.

The effective use of distribution channels has helped the company achieve tremendous growth. Over 50% of the common stocks of the company are owned by Anheuser-Bush. The chief executive officer is Carlos Fernandez. 1. The business model utilized by the company is direct distribution with profit sharing. The executives of the company were extremely motivated they participated in the profit sharing. The firm marketed a wide variety of beer products which enable the company to attract many different types of beer buyers.

The wide product variety helped the company expand internationally. The company created marketing alliances with US distributors that had experienced in the beer industry. In order to compete with the giants in the industry which includes Heineken and Anheuser-Bush the company differentiated itself through unique marketing campaigns. The firm achieved organic growth for decades. 7. Grupo Modelo has to make some changes in order to continue growth and rising profitability. The firm should consider expansion of the company by establishing a manufacturing facility in a foreign location.

The firm has not targeted effectively the European marketplace. The firm’s products are good enough to compete with any beers in the world. Another strategy that could help the firm achieve greater sales growth is the introduction of new products. Two new products should be introduced. The first product should be introduced to target the premium market and the second beer for the cost conscious customers. Selling premium beer can help increase the profitability of the firm, while introducing a cheap beer alternative can help increase market share.