1. Cost advantage. 2. Market share leadership as it is a leader in Mexico
3. Strong management team. 4. Economies of scales – cost advantage due to volume of production.
5. Strong financial position.
6. Lower overall unit cost relative to competitors.
7. Strong tradition in quality and service.
1. Less number of brands has global presence. Majority of its brands are intended solely for the domestic Mexican market. 2. Overly restrictive with regards to distributors. 3. Lesser product innovations in the past few years.
1. Expansion into new markets and segments
2. Expand product line – for new areas and to accommodate changes in taste and preference. 3. Ability to transfer skill to new business units domestically and internationally.
4. Integration forwards and backward.
5. Ability to grow rapidly because of expansion into new markets.
6. Falling trade and ownership regulations in foreign countries.
1. Tax regulations on the beer industry. 2. Declining segments within the domestic market. 3. Slowed industry growth rate.
4. Legal issues dealing with underage drinking – retailer’s license may be revoked or suspended.
5. High quality import beers with lower prices.
6. Changing buyer taste and preference.
7. Consumer health concern (switching to non-alcoholic beverages).
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