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Ab/Inbev: a Sustainable Competitive Advantage

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Anhueser-Busch/InBev: A Sustainable Competitive Advantage! ! Operations Management is a key component in the success of any firm. The textbook

outlines ten critical areas to focus on for Operational Managers--many firms have developed these one or two of these areas into a competitive advantage. One firm, Anhueser-Busch/InBev has successfully incorporated all ten areas of focus and developed them into a legacy of quality and a sustainable competitive advantage. This focus on Operations Managemnt has lead to Ab/ InBev's reputation for quality, and their continued dominance as a global brewery.! Design of Goods! ! The design of goods/services defines a firm, and sets them up for success (or failure) in

the market. In order to design a superior product, firms must first understand their customer— what their needs and requirements are. Anheuser-Busch/InBev has focused on developing a diverse portfolio of global brands to satisfy a myriad of customer needs; a few of their more recently-developed beers are actually based on customer suggestions and recipes. The AB/ InBev portfolio ranges from low-cost products such as Busch (which focuses on a costleadership strategy), while domestic brands such as Budweiser and Bud Light are a force to be reckoned with in the North American markets. Other brands such as Hoeegarden and Leffe appeal to craft beer consumers as well as global markets (a differentiation strategy). By customizing products to various consumer tastes, they are able to obtain greater market share worldwide.! ! AB/InBev’s original beer, Budweiser, was developed in the 1800s by the company’s

founder, Adolphus Busch set out to create a beer that balanced flavor and refreshment— something that everyone could enjoy. This understanding of customer needs, combined with a commitment to quality and consistency still exist in the company today, which contributes to the

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