Modelo Essay Example | Topics and Well Written Essays - 500 words

Modelo - Essay Example Modelo’s expansion strategy was made possible through its strategic alliance with its two main distributors; Bartisor and grambrinus, experienced, creative and knowledgeable subsidiaries with knowledge about local customers in the US market. This strategy ensured that the risk of increase in taxes is hedged. These distributors were delegated with all the value chain processes of the activities except production which was being carried out the parent firm, Group Modelo back in Mexico. They had autonomous control on decisions regarding the marketing, insurance, transportation and creatively marketing captains, from which a campaign that leapfrogged the Grupo Modelo’s sales emanated from in 1986. As pointed out in the report, wine is more competitive in Italy and Ireland unlike beer. Therefore, it will have an opportunity to attempt to enter these foreign markets by both mergers and acquisition from the local importers and distributors. They ca also adopt other strategic alliances with highly expertise- mature companies in this countries. It can be pointed out that, for the company to stand tall, it needs, a sharper differentiation, identifying and focusing on the key marketing that region and developing a creative Marketing development as a strategy