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The Strategic Plan: Anheuser Busch Background
Company Overview
Anheuser-Busch is a prominent American brewing company. The strategic plan centers
around InBev, a prominent multinational beverage corporation. Anheuser-Busch has evolved
into a prominent participant within the brewing sector. The company produces and sells
various drinks, solidifying its position in the industry (Technavio, NP; Reid, NP). The
company primarily focuses on enhancing consumers' enjoyment of life through theme park
entertainment and innovative packaging efforts (Wehring, p5). With 12 operating breweries
in the United States and a significant presence overseas, Anheuser-Busch has established
itself as a bold and savvy industry leader committed to maintaining high-quality standards
(Reid, NP). It operates in a competitive industry, facing both opportunities and challenges.
Anheuser-Busch's strengths include its extensive brand portfolio, global presence, and
commitment to customer satisfaction (Wehring, p8). However, the company needs to work
on areas for improvement, such as adapting to changing consumer preferences and high
employee turnover (Technavio, NP). Opportunities lie in the craft beer market's growth and
the expanding global population, while threats include competition from new entrants and
shifting consumer tastes.
Through its carefully planned, dual-strategy approach, Anheuser-Busch has achieved
remarkable growth, expanding Budweiser's global presence and establishing partnerships
with top brewers worldwide. Through advertising campaigns, beer brands have become
people's go-to choices. Achieving new heights is the company's mission statement (Wehring,
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p5). Aspect of the company's strategy: crucial this is. The company creates its brews with a
mix of contracted and internal brewing. Saving money without compromising quality is
possible through the use of this method (Technavio, NP; Reid, NP). By emphasizing its
strengths and the positive reputation of its flagship beer, Harbin, the company has developed
a strategy to capitalize on the expanding Chinese beer market. A top priority for the
Anheuser-Busch Company and any associated entities is ensuring quality in all areas.
Competitive Landscape
Anheuser-Busch operates in a highly competitive market, with critical competitors
including Deschutes Brewery, Heineken, Tsingtao Brewery, Beijing Enterprises Holdings,
and Harpoon Brewery (Technavio, NP). Despite stiff competition, the firm has registered
steady financial performance. For instance, in 2019, the company reported a net income of
$9.1 billion and total assets of $236 billion, reinforcing its position as a significant player in
the brewing industry. In 2020, the firm also registered a peak in beer sales worldwide.
Strategic Approach
Anheuser-Busch's strategy centers on expanding its brand globally, fostering
partnerships with leading brewers worldwide and promoting beer as the beverage of choice
(Mokuolu, NP). The company strongly emphasizes innovation, with a production strategy
combining contracted brewing with in-house production for flexibility, quality, and cost
efficiency (Technavio, NP). Anheuser-Busch's successful penetration of the Chinese beer
market with Harbin beer demonstrates its commitment to leveraging its brand strength and
reputation.
Financial Performance
Anheuser-Busch has shown corporate resilience. The company's five-year stock price
change highlights its stability and growth potential. Additionally, its return on assets (ROA)
and revenue growth over the previous five years have positioned it favorably in the cutthroat
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industry (Reid, NP). Its capacity to maintain a robust financial position even during economic
fluctuations like the previous pandemic underscores its competitiveness and adaptability.
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Works Cited
Bhasin, Hitesh. “SWOT Analysis of Anheuser Busch.” Marketing91, 20 Feb. 2018.
Mokuolu, Charles A. "Anheuser-Busch InBev (A.B. InBev): The Winning Formula -
Technology and Operations Management." Technology and Operations Management:
MBA Student Perspectives, 15 Dec. 2015,
https://d3.harvard.edu/platform-rctom/submission/anheuser-busch-inbev-ab-inbev-the-
winning-formula/
Reid, Jenni. “Budweiser-Owner AB InBev Reports Profit Hike as Beer Drinkers Shoulder
Higher Prices.” CNBC, CNBC, 4 May 2023, www.cnbc.com/2023/05/04/budweiser-
owner-ab-inbev-reports-profit-hike-as-beer-drinkers-shoulder-higher-prices.html.
Accessed 9 Sept. 2023.
Technavio. “Top 10 Largest Beer Companies and Their Beer Brands in the Global Beer
Market 2023-2027.” Technavio Blog, Technavio, 2023,
https://blog.technavio.org/blog/top-companies-global-beer-market. Accessed 9 Sept.
2023.
Wehring, O. “Draught beer set to struggle throughout 2020 for Craft Brew Alliance as H1
sales slide - results data.” Financial report, 2020. Retrieved from
https://secure.newsedge.com/
