Anheuser-Busch Case Analysis
June 8, 2008
Table of Contents
Description of Firm
Critical Strategic Events
Porter’s Five Forces Model
Competitive Profile Matrix
External Opportunities and Threats
External Factor Evaluation Matrix
Internal Strengths and Weaknesses
Internal Factor Evaluation Matrix
Strategic Position and Action Evaluation Matrix
Boston Consulting Group Matrix
Internal and External Factor Matrix
Grand Strategy Matrix
Quantitative Strategic Planning Matrix
Final Strategic Assessment
Anheuser-Busch (A-B), a major company in the United States, is considered a true American success story for a business that started out of nothing. Even as an avid malt-beverage consumer, I did not realize the extent of A-B’s dominance and prevalence in the beverage market place. Today, A-B is consider, by far, the most dominant company in the American beer market, controlling almost half of the beer sales in the United States—the world’s most profitable beer market.
The business started out around the year 1852 in a Bavarian brewery. Around the year 1860, the brewery was bought by a German immigrant by the name of Eberhard Anheuser who arrived in St. Louis only a few years before. Upon acquiring the business, Mr. Anheuser would change the name to E. Anheuser & Co. About a year later, Mr. Anheuser would find a business partner when his daughter’s husband began working for him in the brewery. In 1876 after months of testing, the world famous Budweiser Beer was introduced and from then on the company started to take off. Shortly after in 1879, the brewery would again change its name to Anheuser-Busch Brewing Association. Unfortunately, after seeing his dreams become a reality through the success of his brewery, Mr. Anheuser would die in 1880, leaving Adolphus Busch to run the business. Adolphus Busch was definitely the right man for the job as he was not only a master brewer but a good business man. Through skillful management, advertising savvy, and an undying commitment towards quality, Adolphus kept the company strong throughout is 23 year tenure until he passed in 1913; leaving his son August Busch Sr. to take over.
In 1920, despite the high demand for the Anheuser-Busch alcohol beverages, the business hit a huge road-block to their continuation of success--the U.S. prohibition of alcohol came into effect. Once this occurred, the true business savvy of the Busch family was tested and shown when they adapted to this huge obstacle by creating a whole new line of diversified products such as ice-cream, malt syrup, refrigerated cabinets, baker’s yeast, non-alcoholic Budweiser, root beer, and other flavored beverages and various products.
By 1933, however, the national prohibition ended giving A-B the green light to start back to their success streak that has continued up until today. The business has been a true example to others on how to capture mass market share by making bold but intelligent moves.
Critical Strategic Events
1933 – National Prohibition ends and the savvy marketing campaign that still shines today is begins when the Budweiser Clydesdales are introduced •
1936 – Budweiser is sold in cans in an effort to save on costs •
1955 – Busch beer line is introduced
1959 – The company’s first amusement park, Busch Gardens, is opened in Florida •
1964 – The company reaches the ten million barrels in production mark •
1967 – The St. Louis brewery is declared a National Historic Landmark •
1975 – Busch Gardens is Williamsburg opens
1980 – Anheuser-Busch is listed on the New York Stock Exchange (NYSE) •
1982 – Bud Light, today a world’s best seller, is introduced •
1984 – Budweiser is introduced in England and Japan
1986 - Anheuser-Busch breaks the...
References: 1. 2007 Annual Report, Anheuser-Busch Companies
2. Anheuser-Busch Announces Record Sales and Earnings for the Fourth Quarter and Full Year 1999
9. Journal for Substance Abuse Prevention, 1990, p. 53-57 Saffers, H., Alcohol Advertising and Motor Vehicle Fatalities.
10. Review of Economics and Statisitics. 1993, p.431-442 Sellers, Patricia.
11. Selling: How Busch Wins in a Doggy Market
Please join StudyMode to read the full document