Mountain Goat Beer: Global Strategy Report for International Markets

This report analyzes the global strategy of Mountain Goat Beer, focusing on its potential expansion into the Indian and Brazilian markets. The report begins with a global scan and audit, assessing the opportunities and risks in both countries. It delves into the Indian market, highlighting the rise in purchasing power and GDP growth, while also acknowledging potential challenges. The analysis then shifts to the Brazilian market, emphasizing its high beer consumption rates and associated opportunities, while also considering potential tax barriers. The report further examines cultural and market fit, exploring consumer behavior and societal factors in both regions. It also assesses Mountain Goat Beer's strategic capabilities, including brand image and financial position. A SWOT analysis is provided to evaluate the company's strengths, weaknesses, opportunities, and threats, with recommendations for navigating the challenges and capitalizing on the opportunities in each market. The report concludes with a summary of findings and recommendations for a successful global strategy.

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Contents
Introduction.................................................................................................................................................3
Global scan and audit analysis.....................................................................................................................3
Indian Markets.........................................................................................................................................3
Brazil markets..........................................................................................................................................4
Cultural and market fit.................................................................................................................................5
Mountain Goat Beers strategic capabilities.................................................................................................5
SWOT analysis............................................................................................................................................6
Risks involved in the Chinese and Indian markets......................................................................................7
Recommendation.........................................................................................................................................7
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8

Global Strategy
Introduction
A planning which is structured for guiding the commercial transactions and trade which
is executed between two entities and that too of different nations. These plans and strategies
hence developed by the business organizations are known as International business strategy. In
general these plans are executed majorly in the case of private companies rather than government
governed entities. The term global strategy is a narrowed concept, which mainly includes the
areas such as global, multinational and international strategies. These plans and tactics are
designed and developed by the business entity so as to attain the organizational objectives and
goals on an international level. While developing a global strategy, it is recommended that if a
business entity distinguishes between the three forms of international expansion, that are the
coming out of the available resources, capability and current position of the company then it will
be proven beneficial for the business corporation (Allenby 2017). The below executed analysis
has been furnished after conducting a detailed research on the international strategies of
Mountain Goat beer which is a brewery in the region of Richmond, Victoria, Australia. The
business entity launched its first brew .i.e. Hightale Ale' amber ale, was released in October
1997.
Global scan and audit analysis
Mountain Goat beer has been planning to expand the business operations to global boundaries of
India and Brazil (Bayne, Schepis and Purchase, 2017). For the same the management and the
marketing team are planning and are also held responsible for evaluating risks and opportunities
in the selected destinations. And hence the further report has been segmented on the following
divisions. The below presented is the evaluation of the potential market of Mountain Goat beer
for the above presented destinations:
Indian Markets
In order to make establishments and expansion in the foreign markets the business entity
is expected to conduct global scan on the risk and the available opportunities. These
opportunities and risks are the variables which are held responsible for stimulating the marketing
conditions for the business entity (Boutabba, 2014). On the basis of a detailed survey the
management and marketing team has found out number of opportunities within Indian markets.
Moreover, the teams have also conducted analysis over the business environment of the markets
so as to set-up wine shops and liquor shops in the Indian markets. The above conducted analysis
will aid the business entity in evaluating factors which are considered as very much significant in
the performance of the business corporation.
On the basis of the conducted survey it has been noted that there has been an increase in
the scope for the establishment of liquor shops in the Indian economy. As the Indian economy
has shown a hike in the GDP and also there are number of trends which has been observed. For
instance, a rise in the purchasing power due to an increasing income level has been noticed for
the past years (Cappelli et al., 2015). Moreover, the current GDP of the economy is $2.454
trillion and the hike observed in the GDP is recorded at 7.2% as compared to that of the last year.
Prior to this, it has been noticed that Agriculture was the sector which generated the maximum
share of the revenue for the Indian economy. But a change in the trend was experienced, after the

Global Strategy
emergence of industrialization and modernization within the economy. Due to globalization
number of foreign countries showed their interest in investments and which brought a rapid boost
to the GDP (Tradingeconomics 2017). Moreover, there was other sector which contributed
largely towards the development of the economy. For instance, service sector was observed to be
the biggest contributor and which made huge positive impacts over the economy. Also the
governing bodies within the economy promoted the youth in order to make utilization of the
available resources within the economy. Further the government also implemented number of
policies and norms so as to provide financial support to the required one, and on the basis of the
analysis it has been observed that the business entity will not face any kind of issues while
expanding the business operations in the Indian markets (Das Nair and Dube, 2017).
Figure 1Indian Beer Consumption
(Source: Indian beer consumption, 2017)
Brazil markets
Brazil has been considered as the third largest nation in the beer consumption all over the globe.
On the basis of the survey it has been noted that the consumption of beer on the basis of per
capita has been recorded at 61 liters in 2016. After reviewing these points, Mountain Goat beer
have great opportunities as compared to India in terms of expanding the business operations.
Moreover, the tax system within the economy may come-up with some barriers for the business
entity while they are entering into the Brazilian market (De Mooij, 2013). The business entity
will have to develop number of strategies and plans for the adoption of the policies and norms
which are levied by the governing authorities so as to get an entry pass into the Brazilian
markets. The sector is held liable for providing of 2% from the GDP. Additionally this sector
provides employment to more than 2,7 million individuals, both direct and indirect
employments, and does not stop to get new speculations. These days there are around 300
breweries in Brazil, in which the greatest 10 breweries have 99% of the manufacturing. Premium
and super-premium brews developed generously, utilization of super-premium lagers have been

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expanded 15% every year, it is driven by learning of the purchasers because of a more globalized
world. Indeed with the development the top notch lager spoke to just 5% of every 2014.
High consumption of liquor has been considered as one of the major factor for Mountain Goat
beer to attain growth and success after expansion (Fang, 2014). As there will increase in demand
for the products due to high consumption expanding business to Brazilian markets will be proven
beneficial for the business entity.
Cultural and market fit
The evaluation of the business factors which are considered as very much empirical for the
success and growth of the business entity in the Indian and Brazilian markets and this is to be
done while stepping towards the international markets (Frynas and Mellahi, 2015). There are
varied cultural factors which are liable in affecting the performance level and business
environment of Mountain Goat Beer. While expanding the business in the international market,
along with the issues of cross-border, the factors such as cross-culture etc. are considered
relevant which have affects the business operations. Societal factors such as influence of
individuals which affects the purchasing power, acceptance of the brand by the society,
communication strategies, etc. For instance the Indian public has a tendency to buy from local
shops and grocery stores so as to get the products at low rates. The below mentioned are the
cultural factors present in the markets of India and in Brazil:
 Attitudes and Styles: Bargaining has been considered as one of the significant factors of
the buying process but it has been observed that this practice is not exercised in the
Brazilian markets and in case of liquor and beer shops of Mountain Goat beer the same
can be experienced (Gereffi and Luo, 2015). So according to this behaviour of consumers
the business entity will have to develop some discount schemes and offers over the
purchase made on, Brazilian markets are free from the issue, which are faced by the
Indian markets due to the high consumption of beer in the economy and this has come-up
as the reason for a rapid boost in the foreign direct investment rate in the Brazilian
markets.
 Distribution of information: An increase in the transparency level is required to be
developed by business entity between its profits and the cost of goods sold. Positioning of
the brands is quite difficult in case of Indian markets and also building trust and gaining a
market share (Grant and Jordan, 2015). For instance, Uber is a multinational corporation
which offers private taxi service and is established in the United States of America. The
business entity moved towards the Indian market and for influencing the customers they
introduced attractive. This aided them in gaining trust and brought an increase in the
goodwill and market share.
Mountain Goat Beers strategic capabilities
The business entity has effectively accomplished and fabricates the image in Australia.
Besides, the business organization wants to extend the business operations in worldwide markets
(Guha et al., 2014). The picked destinations for the expansion plans are India and Brazil and
these business sectors are picked as they are the two economies who have the quantity of factor
which will be demonstrated valuable for the business entity. Moreover, Brazil is the economy

Global Strategy
which has been found on the third rank for the consumption of beer and which can be considered
as one of the factor which will be aiding the business entity in accomplishment of the desired
goals and targets. The below presented are the variables which will demonstrate the strategic
capabilities of Mountain Goat beer:
 Brand Image: Adoption of appropriate strategies is required to be done for establishing
brand equity as it is a very crucial task for the business corporation (Gunjal, 2017). The
primary components considered as significant in this concept is providing a high quality
of products, offering special discounts to the consumers. Moreover, making use of
modern or contemporary means and mechanisms for promoting and advertisement etc.
are considered as significant for developing the brand image of the company. On the
basis of the conducted research it has been observed that the business entity has been
adopting number of modern techniques and methodologies which will aid the company in
attaining the top position in the retail charts.
 Financial Position: According to the survey it has been noted that the business entity has
been making continuous innovations in the products range. Moreover, the business entity
keeps on updating and launching new and improved products that to with enhancement in
the quality (Jie, Parton and Chan, 2015).
SWOT analysis
The below demonstrated is the execution of the SWOT analysis for Mountain Goat beer
(Kleinman and Lin, 2013). As the business corporation is planning for expansion of business
operations in foreign nations the management of the organization is planning for
establishment strategies. These strategies will aid the business corporation in various aspects
for setting-up the business in the new markets. Moreover, the below conducted analysis will
also enable the organization in recognizing the risks pertaining to the firm in new regions:
 Strength: The business entity has a strong brand image and the same has been
considered as the strength which enables the organization to enjoy trust-worthiness
amongst the consumers. Moreover, the brand equity of the firm will also aid the company
in building string relations with the consumers, which will enhance the goodwill of the
entity (Lee et al., 2015). Also the firm serves good quality of products, which even makes
the entity’s image stronger in the minds of the consumers. This will also aid the business
entity by increasing the market share. Further the focus has been provided towards the
strategies which are implemented so as to maintain strong bonds with the consumers.
 Weakness: Intensification in the competitive environment can be considered as one of
the biggest weakness and the same can also be included under the threats for the business
entity. Moreover, the Indian markets can be proven a weak factor for the organization
while expanding the business, as the consumption of beer and liquor is low as compared
(Lynch 2014).
 Opportunities: According to the conducted analysis it has been observed that expanding
the business operations to the foreign markets can be considered as one of the biggest
opportunity for the business corporation. This opportunity will be proven very much
beneficial for the business entity (Muasa, 2014). Moreover, the business corporation can
also plan to establish the market in the virtual world .i.e. business through online websites
and applications.

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 Threats: The increasing competitive environment can be considered as the biggest threat
for Mountain Goat Beer (Mukherjee, Cuthbertson and Howard, 2014). Moreover, the
laws, norms which are imposed by the governing authorities of the new markets and
regions will also come-up as a issue and will develop into a threat.
Risks involved in the Chinese and Indian markets
The following discussion has been executed over the risks which are associated with the markets
and the regions in which the business entity is planning to establish and expand the business
operations and activities:
Legal system: The business corporation is executing the business operating through Australia.
And for further expansion the entity has planned to the functioning of business activities in
Indian and Brazilian markets. In this the business organization will be facing number of barriers
due to the differences in the norms and the laws levied by the governing authorities and followed
and adopted by the markets and regions. The changing market trends can also be considered as
one of the risk for the expansion process (Dawson, 2013). Moreover the business organization
will also face number of risks while expanding business operations in India. For instance, the
organization will face many issues due to the cultures and the religions followed, which restricts
the consumption of alcohol and also there are some regions in India where consumption and
selling of alcoholic products is banned.
Tax System: Mountain Goat beer will also face some risks in the business due to the differences
found in the tax policies and the norms, which has been imposed by the Australian and Indian
governing authorities. There is a huge gap and difference between the Australian tax policies and
the exemption of tax policies as compared to that of the Indian as well as Brazil tax system.
Recommendation
 The two chosen destinations for expansion purpose are India and Brazil and due to which
the business entity should divert their focus towards the consumers and their satisfaction
level.
 Also Brazil will be proven the most beneficial region as compared to that of the Indian
markets for expanding the business as the region has been ranked at the third position in
the beer consumption. This will also enhance the performance and the productivity level
of the entity.
Conclusion
In the limelight of the above executed analysis it has been inferred that Mountain Goat
Beer is a Brewery from Australia. The company has been planning to expand the business
functionalities and for the same India and Brazil are the two destinations chosen by the
management and marketing team of the entity. The above presented report has been focused on
the global scan and audit analysis of the risks which will be faced by the business entity during
the expansion process.

Global Strategy
References
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https://www.beerandbrewer.com/whats-happening-mountain-goat/.
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mission and creative value”, The Leadership Quarterly, 26(1), pp.7-12.
Das Nair, R. and Dube, S.C., 2017, “Growth and Strategies of Large, Lead Firms-Supermarkets”.
Dawson, J., 2013. Global strategies in retailing: Asian and European experiences. Routledge.
De Mooij, M., 2013. Global marketing and advertising: Understanding cultural paradoxes. Sage
Publications.
Fang, T., 2014, “Understanding Chinese culture and communication: the Yin Yang
approach”, Global leadership practices, pp.171-187.
Frynas, J.G. and Mellahi, K., 2015, “USA Oxford University Press”, Global strategic
management.
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Grant, R.M. and Jordan, J.J., 2015. Foundations of strategy. John Wiley & Sons.
Guha, N., Warnakulasuriya, S., Vlaanderen, J. and Straif, K., 2014, “Betel quid chewing and the
risk of oral and oropharyngeal cancers: A meta‐analysis with implications for cancer
control”, International journal of cancer, 135(6), pp.1433-1443.
Gunjal, T.D., 2017, “A Swot Analysis And Recent Fdi Controversy Of Retail Sector In
India”, International Research Journal of Multidisciplinary Studies, 3(4).
Jie, F., Parton, K. and Chan, C., 2015, “Australian beef supply chain integration: case studies of
the two largest Australian supermarkets”, International Journal of Supply Chain and Operations
Resilience, 1(2), pp.121-138.
Kleinman, A. and Lin, T.Y. eds., 2013, “Springer Science & Business Media”, Normal and
abnormal behavior in Chinese culture (Vol. 2).
Lee, A., Yao, J., Mizerski, R. and Lambert, C., 2015. The strategy of global branding and brand
equity. Routledge.

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Lynch, R. 2014, What is global strategy? And why it is important?, Assessed on 10th September
2017, http://www.global-strategy.net/what-is-global-strategy/.
Muasa, S.M., 2014. Cost leadership strategy and sustainable competitive advantage of Naivas
supermarket limited in Kenya. Unpublished MBA thesis university of Nairobi.
Mukherjee, M., Cuthbertson, R. and Howard, E. eds., 2014. Retailing in emerging markets: a
policy and strategy perspective. Routledge.
Tradingeconomics, 2017, Indian GDP, Assessed on 10th September 2017,
https://tradingeconomics.com/india/gdp.