Question

Discuss Anheuser Busch Inbev current corporate strategies

Answer 1

Anheuser Busch Inbev current corporate strategies

Major three key components of its overall strategy:

• Low operating costs
• High investment in marketing & sales
• Leverage of synergies between all global units to optimizer costs and revenue

Anheuser Busch InBev’s global expansion helps reduce its risk because the company has a set of diversified products. The multiple brands in Anheuset Busch InBev’s product portfolio helps the company optimally manage costs and maximize profit.

Anheuser Busch 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.

Anheuser Busch Inbev has been able to use existing distribution channels in target markets, thereby minimizing infrastructure costs. To further reduce costs, the firm employs an aggressive budgeting strategy while also running very lean organizations.

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.

firm’s strategy focus on growth through acquisition more so than growth organically.

The firm has leveraged the synergies associated with mass production and brand diversification – this allows Anheuser Busch InBev command a large local and global market share.

Anheuser-Busch InBev has managed to differentiate itself from its competition by executing business and operating strategies that reinforce each other.

Anheuser-Busch Inbev utilizes many sectors in the market and sustains itself through its many subsidiaries and its mark on the marketplace.