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Anheuser-Busch (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Anheuser-Busch

Anheuser-Busch Companies (Anheuser-Busch) is the holding company of Anheuser-Busch, Incorporated (ABI), a beer brewer. The company is also engaged in the packaging and entertainment businesses. The company operates primarily in the US. It is headquartered in St Louis, Missouri and employed about 30,849 people as on December 31, 2007.


Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Leading market position
  • Strong brands
  • Product development expertise

Weaknesses

  • Market concentration
  • High dependence on wholesalers

External

Opportunities

  • Growing beer consumption in China
  • Advertisement and sponsorship agreements
  • Focus on other beverages

Threats

  • Industry consolidation
  • Rising raw material prices
  • Changing preferences
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