Social Media
Essays

Social media is a critical aspect of building any new brand's reputation. Witness the number of goods and services that have developed a following purely through online goodwill, spanning from Groupon to Facebook.

Faced with increasing price competition on their mid- and low-end brands globally combined with consolidation occurring at a quickening pace across the larger brands and breweries, the Anheuser-Busch Inbev Division needs to move quickly to stabilize its market position. Doing nothing will lead to the company falling quickly behind smaller, more agile competitors who have unique supply chains and production processes that are delivering high-quality premium and craft beers. These smaller brewers with their focus on quality and highly differentiated beers and flavors, along with wide-scale efficiency gains in larger competitors, is squeezing the gross margins and profitability of Anheuser-Busch Inbev Division. As the analysis in this report indicates, the higher the per capita income of a given household, the more beer is purchased. The higher the income the higher the expectation of quality and unique taste as well. Anheuser-Busch Inbev Division will not be able to attract the higher-end, more profitable customers if they continue producing the same products they are today. What is needed is not only a change to their distribution channels but to their product strategy as well. The following recommendations are based on these factors and insights gained from previous sections of this report. Recommendation #1: Develop A More Vertically Integrated Supply Chain As Anheuser-Busch Inbev Division's global competitors align themselves to dominate the fastest growing economies globally, chasing China, India and many regions of Asia by streamlining their supply chains and engaging in joint ventures, the company needs to consider how to become strong in North America. The most strategically vulnerable aspect of the company's value chain today is its supply chain, accentuated by the high level of consolidation occurring in North America today. The future of the North American been market will be deiced who is controlling the most essential and critically important ingredients for brewing beer. Right now, Anheuser-Busch Inbev Division is at a major competitive disadvantage by relying on multi-tier sourcing and procurement agreements. This leaves them very vulnerable to domestic and global competitors alike who could easily enter the American market and quickly buy all sources of barley, hops, grains and essential ingredients for brewing beer. If this happened Anheuser-Busch Inbev Division would either have to drop their standards of quality or consider a joint venture with a smaller competitor that would cost them market leadership. Solving this strategic weaknesses will also open entirely new product line options that will allow Anheuser-Busch Inbev Division to successfully compete at the high-end of the American beer market. Recommendation #2: Turn Quality Management Into A Strategic Weapon Based on the analysis competed earlier in this paper, it's clear that given the price competition and consolidation of major vendors, beer quality is suffering and is trending to the worse instead of better. Instead of following the other competitors down the price curve and steadily losing gross margin globally, Anheuser-Busch Inbev Division needs to take the opposite and invest heavily in quality management systems and processes. With many of the major beer producers globally in free-fall from a profitability standpoint, their quality will suffer and eventually erode over time. Quality is an attribute of beer no one wants to be mediocre about, as a lack of it will lead to a brand being blacklisted and all the marketing in the world won't save its reputation. For many brand-loyal customers of the Anheuser-Busch Inbev Division, the consistent quality of the beers produced are what keep them buying every week. If quality was to drop, these customers would move on, some faster than others. Quality is so central to the future success of the Anheuser-Busch Inbev Division that it needs a strong strategic focus and continual investment. With the rapid consolidation fo the global beer market globally in general and in America specifically, investing in quality has the potential to be a very strong marketing differentiator over the long-term. As Anheuser-Busch Inbev Division's competitors continue to concentrate on surviving through mergers and acquisitions that continually fuel consolidation, the company needs to double down on quality management and get ready to take share from them when their quality drops. It's clear from the analysis section that Anheuser-Busch Inbev Division's competitors will very likely sacrifice quality as they look to gain greater distribution advantage. The exception to this trend are the more well-entrenched European competitors including Carlsberg who is investing heavily in R&D centers and quality initiatives as they see this as critical to their future growth. Chance are with this strategy they will survive the industry shake-out by putting this priority about many other potentially attractive strategic options. With a heavy investment in this area, Anheuser-Busch Inbev Division will also be more able to scale up into the higher-end segments of the market where premium beers are making the most profits today. Quality will also further strengthen their brand, which is excellently received in North America. Investing heavily in quality will further distance them from their competitors as they sacrifice this critical attribute to gain greater profits. For Anheuser-Busch Inbev Division this is a major competitive strength they can continue to distance themselves from competitors with. Recommendation 3: Dominate Distribution and Marketing in North America While Anheuser-Busch Inbev Division's competitors are distracted with strategies for entering the many Asian and South American nations that show potential for growth, the company needs to concentrate on how to dominate distribution in the U.S. and throughout North America. The best possible strategy in this regard is to enter into a series of joint ventures with key distributors throughout Canada, the U.S. and throughout Mexico. Mondelo in Mexico specifically needs to be considered for a joint venture for distribution rights throughout the upper provinces of that nation. As the analysis shows in this report, Mondelo is dominant in Northern Mexico and throughout the Southwestern U.S. including California and Arizona. Mondelo is the distribution company for best-selling Corona beer, which is one of the most potent competitors to the mainstream Anheuser-Busch Inbev Division beers. By creating an alliance with Mondelo and buying up key suppliers in Northern Mexico, Anheuser-Busch Inbev Division will have achieved the goals of the first recommendation and also solidified its distribution channels as well. In addition to joint ventures with key distribution partners throughout Canada, the U.S. and Mexico, Anheuser-Busch Inbev Division needs to strengthen its marketing strategies by being more aggressive and intelligence about using social media as well. The higher per capita income beer customers are on social networks. Anheuser-Busch Inbev Division needs to be there too.

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The traditional processes and roles of journalism are going through disruptive economic, social and political change as a result of the pervasive influence and impact of the Internet and social media. The nature of journalism itself is changing fast as the accumulated effects of the Internet reorder the economics of this industry (Thiel, 2005). With the rapid shifts in the underlying technologies increasing the speed of reporting, there is a corresponding shift in how news is produced and published (Nancy, 2000). With the accelerating speed of reporting there however have been continual challenges surrounding accountability and ethics (Overholser, 2009). Balancing the convenience and speed of the Internet as a publishing platform and the unique, highly targeted nature of social media for reaching multiple audiences into journalism continues to revolutionize the reader experience (Murdoch, 2010). The intent of this analysis is to provide a historical context as to how the Internet is changing journalism today, what the key technologies are that are impacting journalism, and assess the impact of social media on the journalism profession. Historical Analysis of Journalism in the Internet Age The Internet has swiftly progressed from a news-gathering platform to a publishing medium (Loop, 1999) This transition has drastically re-ordered the economics of news reporting and analysis, and also has led to entirely unforeseen ethical, legal and regulatory implications of journalistic practices and integrity (Nancy, 2000). Amidst all of these shifts in the industry structure and potential for profitability has been the rise of independent journalists who are often given equal or even greater attention and readership from the public. Rupert Murdoch sees the growth of the Internet as inexorable and completely capable of re-defining the economics of traditional news gathering, analysis, reporting and syndication (Murdoch, 2010). The fact that many bloggers have more loyal audiences that even the most well-known journalists is a case in point. The inflexion point for the journalism industry began when the Internet and its rapid publishing platforms including blogs, Wikis, video blogs and podcasts collectively created a foundation of trusted content faster and with greater candidness than traditional journalists could (Picard, 2009). Paralleling this shift in trust from the traditional journalists to the blogger community was increasing scrutiny of just how unbiased traditional journalists were. During election years as 2012 has been in the United States there is also the question of just how unbiased the traditional journalists are with regard to reporting the policies and platforms of presidential candidates (Picard, 2009). What's emerging from this analysis of traditional versus online media is the question of accuracy, authenticity, and trustworthiness of each type of media. Traditional media outlets that veer in the far left and right of political views as Fox News has been known to do for example illustrate this dichotomy.

The news media as we have come to know it has evolved significantly over the last 3-4 decades. A country that is emblematic of this point is the United States. Once known for a staple of three major news cases with news luminaries such as Walter Cronkite and Edward R. Murrow, it has evolved into a news source free-for-all with very non-traditional sources creating and making the news.

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