Anheuser-Busch

1
Anheuser-Busch

• Is A-B successful?
• Who are competitors?
• What are key resources capabilities?
• How does A-B compete?

2
Sources of Advantage

• Economies of scale / Efficiency
• 3 Xs Operating Profit per Barrel that of rivals
• 12 Geographically Distributed Breweries
• Advertising
• Bud 276 million
• Miller 259 million
• Stroh 22 million
• All Imports Combined 34 million
• Product Proliferation
• Light, Ice, Dry, Michelob, HefeWeizen, Hard
  Lemon, Killarneys, ODouls, Tequiza, Bacardi
  Silver

3
Successful?

• Stealing Market Share
• 1970-1980 Industry Barrel Growth 5 million/year
• 1980-1990 Industry Barrel Growth 0.8
  million/year
• A-B Market Share Increasing
• Op. Profit / Barrel

Bud
Miller
Coors
4
Recommendations

• What should A-B do
• to increase profitability?
• to sustain or grow market share?
• to explore new avenues for growth?