Corona

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Words: 1804

Pages: 8

Category: Business and Industry

Date Submitted: 12/10/2011 03:03 PM

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Grupo Modelo is the number one beer producer in Mexico and the producer of Corona, one of the leading import beer brands sold in the United States. Since its formation in1922, the company has been family-operated and focused on becoming a leader in the Mexican beer production and distribution markets. More recently, they have evolved this strategy to include export markets such as the United States and Canada.

Question 4

What are the resource strengths and weaknesses of Groupo Modelo? What competencies and capabilities does it have that its chief rivals don’t have? What market opportunities does Groupo Modelo have? What threats do you see to the company’s future well-being? What conclusions can we draw from the SWOT analysis for Groupo Modelo?

Group Modelo is a Mexican manufacturer of beer. Its number one selling Mexican beer is Corona Extra which has managed to reduce the gap on becoming one of the most popular import beers in the United States. Its strength and weaknesses lie in a number of areas.

The strengths for Groupo Modelo are:

1. Its strong portfolio which is lead by its top performing beers like Corona and Modelo.

2. Its outstanding relationships with its distributors in the U.S.

3. Its non-controlling partnership with Anheuser bush in Mexico.

4. Its flavor of beers which all have strong sales and presence.

5. Financial status and security it has maintained.

The Weaknesses for Groupo Modelo are:

1. Poor inventory management and low turnover ratio.

2. Competition of rivalry is high.

3. No partner beer brand in the U.S.

4. Too many other beer companies with similar product.

5. Difficult to maintain competitive edge with new beer companies entering the market.

Groupo Modelo has opportunities in the market of China, India, and Russia, where there is a large population growth.  Both China and Australia offers markets that have great potential for demand of Grupo Modelo's beers. The company has the...