Question

At the corporate level, how diversified is Anheuser-Busch InBev?

Answer 1

Anheuser-Busch InBev (AB InBev)

Anheuser-Busch InBev commonly known as AB InBev is a multinational drink and brewing company based in Belgium. The CEO of this company is Carlos Brito since 2008. It is the type of company which managed to differentiate from other competing companies by their own strategies and business practices. It is a growth oriented business establishment and also cist efficient product in the market which has strongest distribution network. AB InBev mainly focusing on marketing for creating a brand position in the minds of consumers. They were rapidly reached at the global expansion. It led to huge return for their business and increased annual turnover.

Key characteristics of AB InBev

· Growth: The unique strategies and business activities were leads t rapid growth and market standing of the product and the company. And also the products are differentiated from the products of the competitors, it is the main reason for their expansion.

· Cost reduction: The arrival of new companies doesn’t affect distribution channels to the targeted markets of the AB InBev because they are working at low infrastructure costs. They apply aggressive working strategy for doing their business. Their supply chains are very high. It will lead to create sustainable contact with the suppliers.

· Industry attractiveness: As a successful organization it has more industry attractiveness in the minds of consumer. And also their growth is a certain thing in attraction of the consumer. New entering companies should also compete with this attractiveness too.

· Product diversification: Company’s global expansion also reduced their risk in business, because they have differentiated variety of products. The multiple brands help to manage costs and maximize profit.

AB InBev’s operating model

· Human capital strategy (Dream-people-culture): Company works hard to cultivate the best culture to attract, develop and retain top talent. The company can able to continuously develop and promote employees because of its acquisition strategy. They assume new leadership positions in the acquired companies.

· Marketing campaign: They provide huge marketing campaign for their product and it will dictate the prices of the product. It will result in the increase of annual turnover and it also maximizes the profit.

· Knowledge localization: AB InBev’s acquisition strategy does not applicable to the other companies because they locate the talents and resources locally. The company is ensuring that they were appointing good people in the right place. They also consider their ability and mental health for appointing on the particular place in out of the people’s home country.

Their success can be attributed to three main components;

· Low operating cost

· High investment in marketing and sales

· Influence of interactions between all global units to optimizer cost and revenue.