The weaknesses however that are suffered by the company take the form of it high dependence on its domestic beer division. While the Anheuser-Busch company is well established internationally as well, the company relies for 70 percent of its revenues on the nationalUSsales of its beer products. This limits the perspective and the market for beer of the company to theUSmarket only, putting the strain of restricted perspective on the target market.
“During the fiscal year ending 2006, company generated approximately 74.8% of its total revenue from the domestic beer segment. In contrast the other three segments accounted for only 25.2 % of the total revenue during the same period. Strong dependence on a particular segment increases the business risk of the company thereby putting it in a competitive disadvantage.” (‘Anheuser-Busch Companies Inc.’, 2007) In order to launch new products and brands the company has taken substantial amounts of loans and funds from various institutions this has increased the debt for the company, making the liquidity position of the company a very poor and unfavorable one. Aside from this the only other weakness that is present to the Anheuser-Busch company at the moment is that the company is highly dependent on whole sellers for its sales. A proper retailing solution for the company and its products is not devised, increasing the dependence of the company on its wholesalers.
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