. One advantage that Anheuser has is their financial status. A look at their annual report shows that they achieved their best results of the decade. Earnings per share increased 16.2%. Sales to retailers increased 3% over the year. They also received 3% more revenue per barrel due to more cost-effective manufacturing. Sales for all of Anheusers major brand families increased, and Bud Light continued with its eighth consecutive year of double-digit growth. Anheuser has strength in other areas to. Budweiser controls 70.1% of the domestic beer market. Their nearest competitor is Miller Genuine Draft with 11.2% of the market share. Anheusers distribution also gives them more power in the industry. They have devised an incentive plan for their wholesalers that rewards them for selling only Anheuser-Busch products. This plan focuses the wholesaler on selling only one product group. This approach had helped boost domestic sales over the competition. Anheusers manufacturing plants are the most technologically advanced in the industry. This is due to a modernization program that involved updating and replacing old equipment. This has reduced cost by around $300 million per year. It has also increased the output of each facility. Anheuser has an advantage because of their name. Budweiser is one of the most valuable trademarks in the world today. This is due to the large number of promotions they have each year. Every company regardless of the size has certain weaknesses. When dealing with a company of Anheusers size it is hard to pinpoint exactly what the problems are. Typically there are a few common problems that plague any organization. They range from management to distribution. Even though they offer great incentive programs for their wholesalers they may not have the proper direction to sell the product efficiently. If the wholesaler is not promoting, sales in the area will be hurt. Poor marketing can reduce the ...
