Global Forces and the Western European Brewing Industry

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The Western European beer market is one of the oldest, it contains the world biggest beer companies. However, this market facing many changing in political, technology and legal issues which influences directly those companies and influence of their decisions. The PESTEL analysis of the beer industry in Western Europe and the five forces analysis will describe more.. PESTEL ANALYSIS Political Factors- At the beginning of the 21st century the European governments forbear dynamic participation in the beer industry, which was considered as an important part of government revenues, moreover all this government start a big and strong campaign against alcoholism, binge driving and drunken driving (Lawrence & Edwards (2000)). The campaigns against drunk driving have proven its effectiveness by a very large decline in beer sales in Western Europe, which was considered as best-selling items. Economic As we said the Western European markets were the main beer markets in the world, but during the recent years, this industry faced a dramatic retraction in this market. The European governments’ campaigns that aim to help combat excessive alcohol consumption and drink driving, also the high taxes intended for the industry that led to increasing the price for that industry products. This procedure did not allow the cheapest offerings to access the market. Because of the price inelasticity of demand of beer, the beer industry was the best performance in compared to other industries on the European Union, especially in the face of the global financial crisis that hit the global economy, , Lorat (2009). In addition, with the fact that most of the economy sectors were badly influenced by the economic disturbance, still the governments enlarged revenues derived from the industry, in compared with other sectors of the economy. Additional economic factors in the beer industry

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