Question

Which of the five business level strategies does Anheuser-Busch InBev employ?

Answer 1

Below mentioned are some of the business level strategy does Anheuser -Busch in Bev.

Acquisition Strategy – AB InBev’s rapid growth illustrates the firm’s strategy focus on growth through acquisition more so than growth organically.

Cost Reduction Strategy – When acquiring new companies, AB InBev has been able to use existing distribution channels in target markets, thereby minimizing infrastructure costs. The firm has a global supply chain function, which manages the acquisition of every component of supply from a central system. Due to the firm’s size, it can establish long term contracts with suppliers at very low prices for all the business units around the world.

Capturing value Strategy – AB InBev’s presence in multiple foreign markets increases customer’s willingness-to-pay by leveraging the brand equity of various global brands to its advantage.

Human Capital Strategy – At the engine of AB InBev’s management style is its renowned human capital practices. These practices are built upon the good platform recognizes People as the most important resource .

Marketing Campaign Strategy – AB InBev utilizes aggressive marketing campaigns to enable it dictate prices in the market. The marketing campaigns help drive the sales volumes of AB InBev’s products and this leads to increased pressure on the margins of AB Inbev’s competitors.

Knowledge Localization Stratgey–AB InBev seeks to leverage the local talent when integrating acquisitions, Through reallocating resource and sourcing local talent, AB InBev Is able to ensure that its culture is properly instituted within a target company. The company strongly believes in its ability to find people who fit its culture in every country. The company business practices are adaptable, but the culture is ubiquitous.

Improving Industry Attractiveness Strategy– AB InBev’s successful growth has made the industry relatively more attractive to outsiders by providing increased regional competition.

Product Diversification Strategy –The multiple brands in AB InBev’s product portfolio helps the company optimally manage costs and maximize profit. As such, the negative impact of acquiring a company during times of low profitability in the beer market is immaterial.