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    Foreign Market Entry and Diversification for Corona Beer from Mexico

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    Review the Corona Beer (Modelo) case study.

    Discuss how Modelo's international expansion was made possible through strategic partnerships with experienced distributors in local markets.

    Identify and discuss the next foreign market that Modelo should enter and discuss the strategy it should use to enter the market.

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    Solution Preview

    How Modelo's International Expansion was made possible through strategic partnerships with experienced distributors in local markets:

    Modelo has been able to expand its beer brand internationally through strategic partnerships with distributors. In the United States, the company chose strategic distributors in Barton Beers and Gambrinus Inc. These two distributors were among the largest distributors of imported beer and understood the market well. They were also experienced in the marketing and sales of imported premium beers. The two distributors distributed Modelo's beer each in 25 states covering different geographic regions and were responsible for all activities that involved the sale of the beer except for production of the beer. These partners were responsible for pricing strategies, advertising campaigns, custom clearance, insurance and transportation of the beer. Modelo set a subsidiary that was responsible for coordinating supervising and supporting these distributors and ensuring that the right brand image was portrayed by these distributors. This ...

    Solution Summary

    Foreign market entry and diversification for Corona Beet from me is examined.