Business Strategy in Mexican Beer Industry: A Case Applying Game Theory

11 Pages Posted: 23 Oct 2012 Last revised: 21 Nov 2012

See all articles by José G. Vargas-Hernández

José G. Vargas-Hernández

Universidad de Guadalajara, University Center for Economic and Managerial Sciences

Date Written: October 23, 2012

Abstract

In this paper the two major breweries in Mexico, Grupo Modelo and Cuauhtémoc Moctezuma Brewering Company (Cervecería Cuahtemoc-Moctezuma) are analyzed which already have long formed part of an oligopoly because these two companies account for more than 99% of beer market in this country. All this analysis is made from the perspective of game theory. The main objective is to analyze the effects of competition and advertising from one to another brewer from a standpoint of game theory. This analysis is based on one of the clearest examples that have existed for years in a matter of advertising and competition among soft drink companies Coca-Cola and Pepsi-Cola.

Keywords: brewering company, competition, oligopoly, advertising, game theory

JEL Classification: C71, L10, L66

Suggested Citation

Vargas-Hernandez, Josè G., Business Strategy in Mexican Beer Industry: A Case Applying Game Theory (October 23, 2012). Available at SSRN: https://ssrn.com/abstract=2165759 or http://dx.doi.org/10.2139/ssrn.2165759

Josè G. Vargas-Hernandez (Contact Author)

Universidad de Guadalajara, University Center for Economic and Managerial Sciences ( email )

Periferico Norte 799 Edif G-201-7
Los Belenes
Zapopan,Jaliscoi 45100 Mexico, Jalisco 45100
Mexico
5233373703340 (Phone)
523337703340 (Fax)

HOME PAGE: http://www.cucea.udg.mx

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