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Strategic Management: Beer Brands

The resources of an organization provide an underpinning to strategy. The top six beer brands are controlled by three companies despite these products being "regular" beer and "light" beer. What strategic issue(s) explain why these three companies control both types of products?

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Money, brand recognition, early entries into the "light" beer market, strong entries into markets outside of the United States, market share and good advertising are the reasons these three companies succeed. Let us start with the large amounts of money these companies have and can leverage and how it relates to everything else. Because of this ability, the three companies have the ability to most likely manufacture and ship their key brands less expensively and do so in massive quantities (because of ability to buy the best equipment, factories and shipping and storage methods), hire the best advertisers and be able to place those ads at the ...

Solution Summary

The resources of an organization provide an underpinning to strategy. The top six beer brands are controlled by three companies despite these products being "regular" beer and "light" beer. What strategic issue(s) explain why these three companies control both types of products?

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