Anheuser Busch is a brewing company which is based out of St Louis, Missouri. The company makes the brand Budweiser which is one of the most popular brands of beer in the world. The company which owns and operates around 12 manufacturing facilities across the USA has been a fully owned subsidiary of Anheuser-Busch InBev which is a Belgian brewery with interests all over the world.
The company in addition to Budweiser and Bud Lite makes around 100 brands of beer and has a market across the world. One highlight of the brewery is that more than 98 percent of the beer made in the US for consumption is made in the country itself making it American in sentiments. The popular brands by Anheuser Busch are Budweiser, Bud Lite, Busch Beer, Stella Artois, Natural Ice, Lime- A –Rita etc. The company has an annual revenue of 13.8 billion USD and has around 17,000 employees
Strengths in the SWOT analysis of Anheuser Busch
The following are the strengths of Anheuser Busch:
- Market popularity across the globe: Anheuser Busch sells around 100 different brands of liquor across the globe and some of their popular brands are Budweiser, Bud Lite, Busch Beer, Stella Artois, Natural Ice, Lime- A –Rita etc.The company is the market leader in the US and has a market share of around 42 %.
- Top selling brands: After Anheuser Busch acquired Grupo Modelo, the company expanded its portfolio to include five of the world’s top-10 selling brands of beer, and has 17 brands with retail sales over $1 billion.
- Focus on acquisitions: The brand has focused on acquisitions to grow and expand and this strategy has helped it maintain the momentum of growth while sustaining its financial stability. While its nearest rival Heineken has an operating profit margin of 8.3 %, Anheuser has a margin of around 43 .8 %.
- Strong beliefs: The success of Anheuser is due to their conviction in their belief. Some of the beliefs that make up the company are the focus on cost-cutting, passion for winning, focus on customer satisfaction, a creation of a percolative work culture and dedication to values.
- Work Culture: The crux of the work culture of Anheuser Busch is transformational power and it is not something that starts and ends at the boardroom but is deeply embedded within each level of the organization and followed by each and every employee.
Weaknesses in the SWOT analysis of Anheuser Busch
Weaknesses are used to refer to areas where the business or the brand needs improvement. Some of the key weaknesses of Anheuser Busch are :
- Rise of the dollar: Anheuser Busch depends on foreign countries for more than 70 %of its revenues and owing to this the rise of the dollar against other foreign currencies will affect the top line growth of the business.
- Poor organic growth: Anheuser Busch is focused on developed markets and the growth of the beer segment is slowing down and the market is mature. Thus they can no longer depend on organic growth from this market.
- Integration: Anheuser Busch in a master move purchased its biggest rival Sab Miller. However, after the process, the company has been struggling to integrate the companies primarily because of a huge difference in work culture.
- Managing the volumes: Anheuser Busch after its acquisition of Groupo Modelo owns almost 100 brands of liquor. The company has operations in almost all countries of the world with the focus on Brazil, Europe, Mexico, Asia, Europe and now is moving into Africa. Managing the network and distribution as well as the legal hassles of selling alcoholic products in various geographies where legal implications vary significantly is a huge challenge.
Opportunities in the SWOT analysis of Anheuser Busch
Some of the opportunities include :
- Craft Beer: The growth of craft beer will show promise to all companies operating in the beer segment. The focus on craft beer creates a lot of opportunities for collaborative brewing which will help companies to cut down costs.
- Exposure: The online boom has helped customers across the world get exposure to global brands of alcohol and current clients in pubs even in India and Malaysia ask for Budweiser or Bud Light. This increase in awareness can help Anheuser Busch establish stronger presence in these markets.
Threats in the SWOT analysis of Anheuser Busch
Some of the threats include:
- Competition: Some of the major competitors of Anheuser Busch are Miller, Fosters, Heineken and Molson Coors.
- Legal Hassles: Many governments view alcoholism as a serious moral issue and are making moves to increase taxes and to curb distribution. This can pose future threats to the company.