Anheuser-Busch New Market Entry
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Entering the South African market for Anheuser-Busch is a complicated and perilous proposition. South Africa is a nation that is unique in many ways. There are eleven official languages spoken in South Africa by six main ethnic groups. There is a large dichotomy between the urban elites, who are better educated, wealthier, and have access to a wide arrange of public infrastructure, and the rural poor, who are largely illiterate and face highly challenging economic conditions. Additionally, Anheuser-Busch would be taking on the South African Brewing Company, which owns 98 percent of the beer market and 57 percent of the overall alcohol consumption market in South Africa (ILO). In order to penetrate this market, Anheuser-Busch must have a complete understanding of the challenges involved and a clearly articulated and well thought out plan to face them. Perhaps the greatest challenge that will need to be confronted involves managing and coping with the infrastructure issues that will inevitably be faced. These issues will include both hard and soft infrastructure, as Anheuser-Busch adapts to the uniqueness of the South African work-force, the market, and the physical resources that are in place. This paper will examine the management challenges involved with the successful entry into the South African market for global alcohol conglomerate Anheuser Busch. In order for a company to succeed in an expansion to a new locale, one of the first things that must be analyzed is
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not altogether clear whether the South African power grid can provide an adequate and reliable supply of electricity. Anheuser-Busch managers will have to plan for this by closely examining the power supply and, if necessary, make alternative arrangements such as purchasing generators to either provide the necessary electricity or to supplement the electricity that is provided by the South African grid. These generators would amount to a substantial initial fixed cost; however, if they are needed they must be purchased.
Another hard infrastructure challenge for Anheuser-Busch involves the transportation systems and public roadways that are available. For the company to be able to distribute its products in a timely manner, a large fleet of trucks must operate efficiently over the roads. However, it does not appear that the South African government investing enough of its public sector capital on maintaining and improving the system of roads within the country. The bulk of the roadways in South Africa have far exceeded their designed lifespan (Torres, 198). For Anheuser-Busch, this presents an added cost that must be considered. As its delivery trucks navigate the deteriorating roads, they will wear out more rapidly and wi
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Some common words found in the essay are:
South Africa, South African, Land Affairs, Anheuser Busch, Africa ILO, Corruption Index, south african, Anheuser-Busch Anheuser-Busch, Africa Generators, south africa, Brewing Company, Anheuser-Busch Additionally, south african market, african market, hard infrastructure, ministry agriculture land, ministry agriculture, agriculture land, clean water, market anheuser-busch, land affairs, agriculture land affairs, investing public sector, investing public, public sector capital,
Approximate Word count = 1602
Approximate Pages = 6 (250 words per page)
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