SWOT Analysis Report: Constellation Brands - MBAA 635

This report presents a comprehensive SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Constellation Brands, a leading beverage alcohol company. The analysis begins by outlining the company's existing vision, mission, objectives, and strategies. It then develops alternative vision and mission statements, followed by an examination of the external opportunities and threats the company faces, considering market trends and competitive pressures. The report also identifies Constellation Brands' internal strengths and weaknesses, evaluating its financial position, brand portfolio, and operational capabilities. An Internal Factor Evaluation (IFE) matrix is constructed to quantify these internal factors. The core of the report is a detailed SWOT analysis matrix that synthesizes the findings, providing strategic recommendations for the company. The report utilizes current APA format and incorporates outside research to provide a well-supported and insightful assessment of Constellation Brands' strategic position and future prospects.

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Marketing
6/6/2019
(Student Name)

MARKETING 1
Table of Contents
Introduction......................................................................................................................................2
Vision Mission Objective and Strategies.........................................................................................2
Vision...........................................................................................................................................2
Mission.........................................................................................................................................2
Objective......................................................................................................................................2
Strategies......................................................................................................................................2
External Opportunities and Threats.................................................................................................3
Internal Strengths and Weaknesses.................................................................................................3
Internal Factor Evaluation Matrix...................................................................................................4
SWOT Analysis Matrix...................................................................................................................4
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

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Introduction
Constellation Brands is considered as one of the 3rd leading manufacturer as well as
dealer of beer in the country United States as well as the 2nd prevalent manufacturer of wine in
the developed country United States, New Zealand as well as Canada with an operation also in
Mexico and Italy. The company holds 14 and 2.7 percent of the entire wine market share in
United States as well as worldwide (Santos & Richman, 2016).
In the subsequent part there will be comprehensive study of the internal and external
environment of the company that made them strong in the competitive market and strategies that
is major adopted by the company to grow in the competitive market.
Vision Mission Objective and Strategies
Vision
According to the profile of business, Constellation Brands seeks to “Elevate Life With
Every Glass Raised” by subsequent as well as making the penchants of consumers. Its fortes
comprise a idealistic management team, fervent as well as varied staffs, and an unweaving
community to accountability as well as devotion to helping its public (Aal et al., 2016).
Mission
The mission statement of Constellation Brands claim to shape the brands that individual
love and support them to associate with one another. They will artfully cater its products with a
desire for best winemaking as well as business leading standards for excellence. The company
has mission to target its consumers smartly through leading innovation, effective marketing that
help the company to grow in the market (Mauroner & Zorn, 2017).
Objective
It is one of the objectives of the company to lead in the global market sustainably. The
company has an objective to deliver quality products to its consumers that make them satisfied in

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the market. Moreover, it is an objective of the company to diversify business than help in
enhancing market share of the company more efficiently (Villanueva, 2015).
Strategies
Constellation Brands undergoing extensive consolidation of suppliers, retailers as well as
wholesalers to compete in an industry. The company has used different strategies to grow in the
market. The company has adopted both acquisition as well as divesture over numerous years to
precipitously assimilate. The company has acquired most top companies among which one was
Grupo Modelo’s US beer segment in the year 2013. The company has diversified is business in
glass bottles. The company has acquired company of glass bottle to entre in such industry. It
makes them more competitive in the market (Geissinger & Laurell, 2018).
External Opportunities and Threats
Opportunities
 With the completion of acquisition of Crown Imports segment broaden the market for the
company. They can cover 50 states for its products.
 The wine industry in US has enjoyed a growth rate of over 5% and it is expected to grow
with an annual rate of 6.5% that will give new opportunity to the company.
 The company has just acquired a 9.9% share in the Canada-based Canopy Growth
Corporation therefore, the current regulation towards the authorization of cannabis as
well as the acquisition of such company create opportunity for them to grow in such
market.
 The increase in popularity of American whiskey give new market segment to the
company (Flight & Coker, 2016)
Threats
 The beer market is highly competitive in US in whom the major competitor for the
company is SAB and AB InBev. Moreover, the competition is increasing day by day that
will generate threat for the business.

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 The sales of beer have declined in the last five years that is expected to go more down.
However, the company has invested huge amount in glass bottle business. Therefore, the
decline in demand of beer can effect on the overall revenue of the company (Hammedi,
Kandampully, Zhang & Bouquiaux, 2015).
Internal Strengths and Weaknesses
Strengths
 The acquisition of leading companies makes the company stronger which is one of the
main strategies of the company.
 The low cost structure of the company help it to produce at a low cost as well as make the
company to sell its product at low price in the market
 The company has strong financial position as well as it has largest asset base that provide
it with better solvency
 The company has taken sustainable steps such as in the year 2011, the company became
largest solar user of wine company that enhances its goodwill in the market.
Weaknesses
 The company has absence of chief operating officer, chief technology officer, chief
strategy officer, R&D officers as well as chief market officer that create issue in
managing such department effectively.
 The marketing strategies of the company is not that much strong of the company than its
competitors (Uggla, 2016).
Internal Factor Evaluation Matrix
Strengths Weight Rating Weighted Score

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1. Strong acquisition strategy
make company competitive
in market
0.12 3 0.36
2. Control over the cost help in
providing products at
reasonable prices in the
market
0.12 4 0.48
3. The company has strong
financial position and asset
based that make them
competitive in market
0.16 4 0.64
4. Sustainable steps of
company attract maximum
number of consumers
0.15 3 0.45
Weaknesses
1. Inefficient of management
of organizational structure is
one of the weakest point of
company
0.20 2 0.40
2. Weak marketing strategy as
comparison to competitors
0.25 3 0.75
Total 1 19 3.08

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Therefore, a score of 3.08 represent that the internal factor of the company is going good.
The company has great international position that made the company competitive in the market
in an effective and efficient manner.
SWOT Analysis Matrix
SO WO
 The company can more cover the
market through the acquisition of
leading companies.
 The company can target its consumers
in new market through low pricing
strategy
 The company can develop
environmental friendly product to
attract new segment
 The company can hire new employees
while entering in the new market.
 The company can adopt innovative
promotional strategy and can use social
media to target new market
ST WT
 The company is required to use robust
dispersal network to reach out new
consumers and compete competitors
 The company can usage its strong
financial position to capitalize in
 To compete competitors, it is required
for the company to enhance outlay on
research and development.
 Allocating responsibility to the
marketing manager will lead the
company to manage the promotional

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intellectual property. It would help in
enhancing sales of the company
activities more efficiently
Conclusion
It can be concluded from the above analysis that the overall performance of the
Constellation Brands is efficient. The company lag at certain extent still has expanded its
business at greater level. the company has adopted acquisition and divesture strategy in its
business that made them competitive in the market however, the company has also faced certain
challenges that can be cope up while effective strategies adopted by company.

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References
Aal, K., Di Pietro, L., Edvardsson, B., Renzi, M. F., & Guglielmetti Mugion, R. (2016).
Innovation in service ecosystems: an empirical study of the integration of values, brands,
service systems and experience rooms. Journal of Service Management, 27(4), 619-651.
Flight, R. L., & Coker, K. K. (2016). Brand constellations: reflections of the emotional
self. Journal of Product & Brand Management, 25(2), 134-147.
Geissinger, A., & Laurell, C. (2018). Tracing brand constellations in social media: the case of
Fashion Week Stockholm. Journal of Fashion Marketing and Management: An
International Journal, 22(1), 35-48.
Hammedi, W., Kandampully, J., Zhang, T. T., & Bouquiaux, L. (2015). Online customer
engagement: Creating social environments through brand community
constellations. Journal of service management, 26(5), 777-806.
Mauroner, O., & Zorn, J. (2017). Cluster branding-a case study on regional cluster initiatives,
cluster management, and cluster brands. International Journal of Innovation and
Regional Development, 7(4), 290-312.
Santos, M. R., & Richman, V. (2016). FINANCIAL RATIO AND VALUATION ANALYSES
OF CONSTELLATION BRANDS INC.: A CASE STUDY. Strategic Winery Tourism
and Management: Building Competitive Winery Tourism and Winery Management
Strategy, 247.
Uggla, H. (2016). Leveraging Luxury Brands: Prevailing Trends and Research Challenges. IUP
Journal of Brand Management, 13(1).
Villanueva, E. C. (2015). THE ANGLO-SAXON NEW WORLD WINE
PRODUCERS'PARADIGM SHIFT IN WINE BUSINESS. Global Business &
Economics Anthology, 1.

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