The Failure of the First Foray of International Breweries in China, the Success of Anheuser-Busch and SABMiller, and the Business Strategies of SABMiller Essay

Why did the first foray of a majority of international breweries fail? Compare the first foray and second foray of foreign entrants, and predict the possible outcomes.The first foray for international beer investors in China failed because the majority of the people were low income earners and could only afford cheap beer that was produced locally (Zhigang, 2016). The market was viable for only local manufactures. The second one was successful because by 2002, more than 250million people in urban centers were middle class and others were wealthy meaning there was a change in lifestyle and the people could easily afford drinking international beers regardless of the price (Zhigang, 2016). Price wars were no longer viable in competition. What are the reasons for the success of Anheuser-Busch and SABMiller in the Chinese beer market?Anheuser-Busch and SABMiller were successful because unlike the first time investors who set up new production centers, they joined and merged with the already existing Chinese beer companies that were already experiencing economies of scale and had customer loyalty. Define the merits and demerits associated with variety of entry modes, and analyze the types of companies that use certain strategies to better effect.The major merit of using the aforementioned strategy is that there is very little need for marketing and advertisement. This is because the companies are focusing on the leading beer producers in China and increasing the production of their most sold product for instance the snowflake (Zhigang, 2016). It also means that the chances of experiencing negative profits are reduced. Conversely, the major demerit is that it is a very expensive investment and the company does not take over the Chinese beer company, it buys shares meaning that decisions and strategies are discussed jointly as per their agreement. . In the bidding game under discussion, what is the impetus for Anheuser-Busch to propose such a high price what are the costs and benefits?The reason Anheuser-Busch has suggested...

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