Heineken Case Study Essay

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What trends from the external macro-environmental factors are most important to Heineken, specifically, and why?



One of the trends from the external macro-environmental factors that are most significant to Heineken specifically is the trend of merger and acquisition. This is important to the company because its competitors are not only increasing the statuses and positions in the global market, but are also attaining more proficiencies in manufacturing and distribution. Devoid of acting upon this trend indicates that the company runs the risk of falling behind and losing its string position in the global market. Another trend is international consolidation. This is important to Heineken because the other companies attained domination in the global markets from being a company that was not previously largely renowned by consumers. Another trend is the growth of the Hispanic population. This is important to the company because the Hispanic population is responsible for 25% of the sales in the United States. Therefore it is important for Heineken to market brands that target this consumer base.



Which of Porter's 5 forces are most impactful to Heineken, specifically, and why?



Porter's 5 forces encompasses five elements that include threat of new entrants, threat of substitute product or services, rivalry among existing competitors, bargaining power of buyers and bargaining power of suppliers.

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The force that is clearly identified and discussed in exceptional length in the case study is the rivalry among existing competitors. In particular, change in the beer industry had been taking place owing to significant wave of consolidation. Majority of the bigger brewers started to undertake merger and acquisition with their competitors in global markets to become global players. This steered them into a dominant position in different markets across the globe and also granted ownership of such brands. What is more, this granted the competitors with capabilities in manufacturing and distribution. Even with respect to establishing an international presence, the company faced severe competition and found it very hard to go toe to toe with the recent moves made by competitors such as Inbev and SABMIller of Belgium and United Kingdom respectively.



What are the critical issues facing Heineken and what should they do about them?



There are a number of critical issues facing Heineken as pointed out in the case study. One of the critical issues is the conservative….....

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References


Heineken pdf. (n.d). Case 29: Heineken.

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