Heineken

In: Business and Management

Submitted By fiona638
Words 348
Pages 2
Executive Summary
The purpose of this report is to conduct a strategic analysis and strategy evaluation on the chosen strategic business unit (SBU) – Heineken.
Being the world’s 3rd largest beer brewer, Heineken’s opportunities and threats are subjected to external forces and internal proficiencies. The beer industry is in its mature stage. Therefore, opportunities mostly come from economical, social, technological and environmental factors.
With an increase of affluent consumers, especially in emerging markets (i.e. Brazil, Russia, India,
China and South Africa), would allow Heineken to expand its brand further. Moreover, changing preferences and ageing population create new prospects through various technological innovations. As consumers are getting more environmental-friendly, Heineken has the vision to implement several green initiatives so as to better position their brand.
With 50% of the global beer market held by four largest players, the beer market is highly consolidated, thus very competitive. Hence, it is difficult for new entrants to enter the beer market. Despite being a highly-valued brand, Heineken faces threat from wide availability of substitution and low switching costs by buyers. On the other hand, Heineken’s vertical integration greatly reduced suppliers’ bargaining power. Conversely, due to ease of switching brands at low switching costs, buyers possess higher bargaining power.
A strong base of resources and well developed competencies offers Heineken a competitive advantage. Thus, Heineken’s forward-thinking approach to its strategies is suitable. In conclusion, Heineken is able to thrive with its current strategic moves, while continuously anticipating and responding to both external and internal changes.

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Table of Contents
1. Background…...

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