Economies of Scale and Competing Advantage over other beer
companies:
- Anheuser-Busch is the largest domestic producer of beer with
48.8% share of the market.
- For, Anheuser-Busch compared to other beer companies.It’s
cheaper to produce a range of products together than individually.
It is distributing beer well below the unit cost of the individual
small brewers
- Bigger geographic footprint and market presence in Africa and
Latin America.
- Anheuser Busch also owns Eagle Snack foods and benefits from
cross-promotional activity in advertising and distributing these
products along side its beer brands. It attains economies of scope
in advertising and distribution in both beer and snack-food
markets.