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Foreign Market Entry for Corona Beer

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See attached file.

Review the Corona Beer (Modelo) case study.

Discuss the challenges that Modelo faces from its competitor InBev, and how it might respond strategically to the industry giant.

Discuss whether or not Modelo should diversify its business, what business it should enter into (if any), and why.

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Solution Summary

Foreign market entry for Corona Beer is examined.

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The Review of the Corona Beer:

The Corona Beer was the largest beer producers and distributors in the whole of Mexico. The company had great establishment of products such as the Victoria and Corona Extra which dominated the markets increasing the sales levels of the company. As the company reached for a larger target market, they encountered a lot of problems from their competitors. One of the challenges they faced was the diverse pricing strategies that was utilized by their competitors after the doubling of the federal excise tax. This made the company to have a downward trend of their sales levels. The company also aimed to increase its production to face the ascending international demand for their products this was made possible by the expansion of the company production capacity across the board, one of the brands of the company Corona Extra was ranked among the top most preferred drinks (Foreign Market, 2010).

Respond Strategically To the Industry:

To counter all these problems that were coming against the company it was time for the corporation to enhance its domestic power. The strategy that the company can use to be top of the industry was to emend the ambition that was driving the functions of the organization which was 'overtake ...

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