Corona Political plays an important role when they change the Trading Policy. This could means opportunity or threat to the company. The government in Mexico is unstable which may lead to any unrest within the country. This could potentially halt their production. It may create opportunity to expand or Increase local competitions. Corona expanded internationally, especially LJSA, with no local production this create the risk of foreign currency exchange rate fluctuation when economic changes.
The society may change their preference and turned Into health conscious consumer, this would significantly impact the sales of all alcohol company. Technology will help corona In their marketing campaign, this will create new and unique ways of marketing for Corona. Technology also could help improve their distribution and production effectiveness. Beer is produced from raw material, climate change plays an Important role for corona supply chain which may lead to an Increase In raw material cost.
Lastly, the change in legal may leads to a change in person behavior, rend or lifestyle. If restriction or fine increases then consumption of alcohol may reduce. Industry Analysis – Five Force HIGH – Rivalry among competing sellers: This Multi-countries market consist of enormous number of players domestically and internationally. The competition Is high and marketing expenses is extremely high. Each company established strong relationship with their distributors while the market is looking toward global perspective, this result in an Increase demand for merger and acquisition.
HIGH – Bargaining Power of Buyers: Only distributor knows the market really well so the company has to depend their sales on the distributors. The demand for Corona increases as restaurant demand for Corona increases, this even create more bargaining power for buyers. LOW – Potential new entrant: High initial investment cost, marketing cost and highly competitive market create a big barrier for new entrant to try to grab the market shares. HIGH ” Substitute product: Beer Is a beverages. any refreshment would consume to replace beer. This include, whisky. ter and soft drink LOW – Bargaining Power of Supplier: Demand for beer increase rapidly so the company require a large amount of raw material, labeling and bottling. Corona has the power to change or bargain to these suppliers as there are substitute suppliers. Industry Analysis This Industry Is consider as multl-countrles as must of the countries still operating and focus in their own country of origin, however the trend has change and all the company are thinking global. There are only a few players who control the majority of he market share In this Industry.
The new player Is Heineken and FEMSA. The industry is highly dependent on the marking and advertising campaign which was proven to boost their sales significantly. The Industry also has high potential for any merger & acquisition. Enterprise Analysis Board Differentiation Strategy is used by Corona in expanding its product globally. They are targeting a large segment of consumers by Introducing varies of products to serve tnelr needs. corona product Is OITTer Dy tne way It Dottle, posltlon ana surr (witn lime).
The relationship between Corona and strong distributors is excellent. Their distributors were responsible for the marketing which was significantly effective with a very low budget of 5. 1 million USD when comparing to competitors budget used. The marketing campaign made “Fun in the Sun” stick in the market and created the while new unique experience for end consumers. Not only marketing but Corona also differentiate its product by surfing with lime to remind the consumer about Tequila of Mexico. The weakness of Corona to its strategy is the production manufacture.
Corona only has its production in Mexicxo, this create risk from foreign exchange rate and economic. Channels of distribution in Mexico is limited due to FEMSA control most of the channel in Mexico, would result in decreases in sales revenues in the future. Corona taste test was ranked low wile FEMSA all rank in the top 6. Financial Analysis Corona was able to improve their revenues, reduce cost, increase profit margin and increase ROE over the past years. This indicate strong financial position of the company so there is no current financial issue for Corona.
Problems/Challenges 1. Political unrest will significantly impact Corona if not diversify. 2. How could Corona maintain its position domestically and also grow internationally? 3. How could Corona mitigate risk and improve profit margin internationally? The first priority Corona should do is to diversity their production elsewhere due to political unrest. This would totally stop Corona production line and create a huge loss to the company as well as the images. Problem regarding the merger between lnBev and Anheuser- Busch, the top two beer producers in the world.
There are two directions from this event (1) Anheuser-Busch believe Corona is not their competitors so the sales will not cannibalized between companies. (2) Anheuser-Busch use its right of 50% to demolish Corona in order to buy Corona in a lower price in the future. I personally believe the first option is the wisest because Anheuser-Busch could build Corona in a different segment and purchase them at the later stage with successful product at hand. Recommendation to Top Management 1 . Expand its production manufacture to USA or any country which Corona has high ales volume.
This is to mitigate the risk of foreign exchange rate, reduce the cost of production and tax regulation changes. Corona will gain cost competitiveness and this allow Corona to lower its price to compete with competitors. Corona investment could be in two ways (1) Build its own manufacture, this require an enormous amount of capital investment and take time to breakeven (2) Alliance with existing manufacturer, this require less capital investment, however there is also risk of information leakages. Corona also can initiate main manufacturer by regions, one in
China to distribute to al ASEAN countries. Using Alliance would enable the company to expand faster than the first methods. I recommend Corona to use Alliance during the first stage and change to own manufacture if needed. 2. Keep producing in Mexico and introduce new products to satisfy domestic consumption in order to weight revenues priority into domestic consumption as to minimize the risk of foreign exchange rate fluctuation. Corona must aggressive use option, future and swap for its Torelgn excnange In order mltlgate if use well. tne rlsK Trom pol t I Ical unrest ana tney could earn
The Progressive Era and reform movements
The Progressive Era and reform movements.
1)Reconstruction, the South, and Civil Rights (including the “New South” of the late century) Lectures:
#2 –The West during the late century (including U.S.-Native American relations)Lecture: .
#3–3#The Gilded Age(including industrialization, the labor movement, major strikes, immigration, and urbanization) .
#4 –The Progressive Era and reform movements (including the Populists)
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