Budweiser is a popular brand of beer that is owned by the world famous brewer headquartered in St Louis, USA – Anheuser Busch. One of the largest brewers in the world, Anheuser Busch has around 100 varieties of liquor in its kitty including Budweiser. The key sub-brands of Budweiser are Bud Light and Budweiser Chelada.Budweiser is primarily consumed in the US where it is the market leader and almost 98 % of the beer consumed in the region is manufactured within the country.
The company has an annual revenue of 13.8 billion USD and has around 17,000 employees. The alcohol content in Budweiser is around 5 % and the beer is sold in around 80 countries across the world in both the packaged and draft versions. The beer is brewed with around one-third of rice along with malt and hops.
Strengths in the SWOT analysis of Budweiser
The following are the strengths of Budweiser:
- Presence across the globe: Including Budweiser, Anheuser Busch sells around 100 different brands of liquor to around 80 countries across the globe. They have the strong presence of beer and their top brands are Budweiser, Bud Lite, Busch Beer, Stella Artois, etc.The company is the market leader in the US with a market share of around 42 %.
- High Retail sales: After the acquisition of Grupo Modelo, Anheuser Busch owns around the world’s top-10 brands of beer, and has 17 brands with retail sales over $1 billion. In addition, they are also connected to a network of pubs and bars across the world.
- Sign of corporate hegemony: For most seasoned beer drinkers, Budweiser is synonymous with the world of beer. This corporate hegemony which gives Budweiser a status similar to that of Big Mac in the world of fast food is on its core strengths.
- Promotions: The promotional campaigns, as well as public relations initiatives of Budweiser, have been the strong reason for the success and popularity of the brand. The beer sponsors key sporting events as well as sports teams such as the US Olympics Team in 2014 which has helped the brand positively.
- Innovation: Budweiser has stayed popular in the beer segment primarily because it has been able to successfully change with times. The company has also invested in research into the brewing process, ingredients as well as preservation modes so as to ensure that there is efficiency in the system.
- Work Culture: The focal points in the work culture of Anheuser Busch are transformational power and it is not restricted to just the boardroom but is connected to every level of the organisation and followed by each and every employee.
Weaknesses in the SWOT analysis of Budweiser
Some of the key weaknesses of Budweiser are :
- A rise of the dollar: Most of Budweiser’s business comes from foreign countries and they account for at least 70 %of its revenues. As the dollar rises against other foreign currencies the overall profitability of the brand for the business suffers.
- Poor organic growth: The pace of growth in the US and Canada which are Budweisers primary markets is stagnating and the company would now need to look at foreign markets for organic growth.
- Merging the top brands: With the merger between Anheuser Busch and Groupo Modelo, it becomes critical that the two brands Budweiser and Corona merge. However, this is a critical challenge for the companies since there is a huge cultural disparity.
- Grabbing the millennial market: In comparison to the older generations, Millenials prefer the craft beer and Budweiser are still to break into the millennial market failing which its sustainability in the years to come will be a question.
Opportunities in the SWOT analysis of Budweiser
Some of the opportunities include :
- Craft Beer: The growth of craft beer is something that most alcohol companies cannot ignore.The focus on craft beer will increase the number and scope of opportunities for collaborative brewing which will help companies to improve overall efficiencies.
- Increased awareness of foreign brands: Online and social media marketing, as well as increased exposure to the internet, has increased global awareness of foreign brands of alcohol and current clients in pubs even in India and Malaysia ask for Budweiser or Bud Light. This is helping such brands look for business in Asia.
Threats in the SWOT analysis of Budweiser
Some of the threats include:
- Competition: Budweiser and Anheuser Busch face a lot of competition from Miller, Fosters, Heineken and Molson Coors.