Foreign Market Diversification

In: Business and Management

Submitted By gjeffers
Words 1481
Pages 6
Foreign Market Entry and Diversification
Georgia Jefferson
Strayer University

Abstract
This paper will discuss and identify the trends in global beer markets. It will discuss how Modelo’s International expansion was made possible by building strategic partnerships with experienced distributors in local markets. The paper will focus on how Modelo should enter in the foreign market and what is the best strategy. Modelo will face many challenges from his competitors and make the decision whether the company should diversify the business to promote growth.

Identify and discuss the trends in the global beer markets.
The global beer markets have four main trends and they are consolidation, international expansions, mergers and acquisitions. Consolidation with the beer industry broadens the area of sales and exposes brewers to more opportunities for growth of its company. Expansion of any company can be a positive attribute to overall success for the most obvious reason, revenue. The trend of breweries expansion might be credited to the very expensive initial startup cost of a brewery. In this area of the beer industry having more than one area of cash flow assists with the maintaining the fluctuating price of resources. (Thompson, Strickland III, & Gamble, 2009) International expansion can be a major attribute to a company’s success through seeking proficient production efficiencies. Some beer companies will produce their beer within its country than export versus having operational facilities in other countries where the beer is sold. International expansion unjustifiably broadens opportunities for beer distributers as well as top level executives with stimulation of a growth market. Mergers and acquisition are a very popular business venture with the beer industry because it is such a huge market they can increase a company’s exposure in…...

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