Heineken Case Study

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Heineken has been one of the world’s leading brands in the global beer industry for more than 130 years (Mladen, 2012). Founded in 1864 in Amsterdam by Gerar Adriaan Heineken, the company now owns over 125 breweries in more than 70 countries and employs approximates 70,000 people (Mladen, 2012). Heineken first shipped to the United States only three days after prohibition ended and has been providing products to the country ever since (Drouin-Reed, 2012). In the United States, approximately thirty-seven percent of adults are beer drinkers, and beer is the most widely purchased alcohol beverage (Mladen, 2012), making the industry a large and competitive one. Problem In developed markets, the future growth in the beer industry is forecast at close to zero due to the maturing of the industry and its approach to an ‘end-game’ situation (Heineken, 2008). Heineken is losing import beer market share in the United States and as such its profits and growth are suffering. This decline is due to the increasingly competitive conditions in the industry and Heineken needs to improve this market share in order to continue the company’s growth (Heineken, 2007). Analyses Despite its success so far in the global beer industry, Heineken needs to assess its future strategies and options in order to continue its growth in a market which is maturing and changing (Heineken, 2008). To do this, Heineken will need to realize its strengths and weaknesses and move to benefit from the opportunities in the market, while mitigating and risks or threats. Strengths • Heineken’s business is very differentiated, with brands in over 13 different markets worldwide (Mladen, 2012). The differentiation strategy used by Heineken has so far been instrumental to its success (Mladen, 2012). • The company has made many acquisitions with national breweries and as such has become a global brand

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