Introduction Group Modelo S.A de C.V (Modelo) established in 1922 within the Mexican brewing industry. In its operation, the firm’s initial brand was known as Modelo 1 . After some time, the firm introduced another brand known as Corona Extra. Over the years, Corona Extra managed to attain a significant market share. For example, the brand was ranked as the 4 th best selling brands with regard to volume. In its Mexican domestic market, the firm was facing intense competition from other firms such as Heineken. During the 1930s, the firm experienced a challenge arising from the Great Depression. However, the firm’s financial stability was restored by 1935 through an acquisition of Toluca Mexico Brewery 1 . Additionally; there was a significant growth during this period within the Mexican brewing industry. This was characterized by an increment in the level of production and distribution. In an effort to survive into the long term as a going concern entity, the firm’s management team came into a consensus to venture into the international market. Decision to incorporate the concept of internationalization was motivated by an increment in demand within the international market. In its initial internationalization phase, the firm decided to introduce Corona Beer into the international market starting with the US. This paper is aimed at evaluating the performance of Corona Beer in the international market. Identification of issues Competition within the market For a considerable duration, the beer industry in Mexico was protected. This limited the intensity of competition from foreign firms. In an effort to stimulate economic growth, Mexico joined NAFTA by entering into a trade agreement. This meant that foreign firms could enter into the Mexican market. The resultant effect is that the local firms experienced an increment in the intensity of competition. For example, some of the firms which posed a threat to Group Model include the American and Canadian firms which ventured into the local market. Market entry strategy There are diverse strategies that a firm can use in entering the international market 2 . Some of these strategies include use of agents, exporting and foreign direct investment. The case presents an illustration of the strategy used by Modelo Group in venturing the international market. In its effort to venture into the international market by introducing Corona Beer, the firm’s identified the US as its target market 3 . Modelo decided to use US agents to distribute Corona Beer in the US market. The firm contracted Amalgamated Distillery Products Incorporation as its agent. Group Modelo also entered into distribution contracts with other local firms which operated within the international market. This played a vital role in the firm’s internationalization efforts. The quality of product determines the effectiveness with which it penetrates the international market. This is due to the fact that it contributes towards the product attaining an optimal market position 4 . In venturing the American market, the firm also used Barton Beers Limited as its distributor. Use of foreign agents in the international market increases the effectiveness with which a firm enters the international market. This arises from the fact that foreign