Anheuser Busch Case Analysis

CASE ANALYSIS TOOLS

"COMPONENTS OF A CASE ANALYSIS REPORT"

 CURRENT SITUATION

Anheuser Busch, leading brand of beers, has grown to be one of the world's largest beer companies. China beer market is an increasing market with a huge potential.

Anheuser Busch wanted to enter in this market through adquisitions of other Chinese beer companies and finally with Harbin Brewery. As a result of making the adquisitions, AB obtained Harbin's shares, having reached total holding of 99,66% voting shares.

 EXTERNAL ENVIRONMENT

SOCIETAL OVERALL

PEST ANALYSIS

OLITICAL / LEGAL

• Descentralized power structure.

• Influence of provincial and municipal government towards local affairs.

• Unstated hierarchy of power.

• Transportation restrictions.

CONOMICAL

• Growth of China economy.

• Fragmented market.

• Low income in the mayority of regions.

OCIO-CULTURAL

• Poor standard of living.

• Chinese people don't have loyalty to a particular brand.

• Pub culture emerging.

• Price conscious consumer.

ECHNOLOGICAL

• Poor infrastructure.

INDUSTRY OVERALL

PORTER ANALYSIS

 BARGAINING POWER OF BUYERS

The power of buyers is high because Chinese people are not loyalty to a specific brand. Also, Chinese beer consumers are poor and live in agricultural heart land and pay extremely attention to the price's product.

 BARGAINING POWER OF SUPPLIERS

The power of suppliers is high because it exists around 500 and 1000 firms that manufacture beers in China. Additionally, it exists some companies that offer imported beer brands.

 THREAT OF NEW ENTRANTS

The threat of new entrants is moderate because as barriers of entry exists: fragmented market, government regulations and distribution systems. Economies of scale of beer's companies established are a huge treat for new companies. Also, companies usually realize joint-ventures or acquisitions