Business Strategy Case Review - Corona
Business Strategy Case Review – Corona
Environmental Analysis (PESTEL)
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 USA, 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, trend 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
Environmental Analysis (PESTEL)
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 USA, 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, trend 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