Case Study : Heineken 's Beer Market

The relevance of demand and supply in economics cannot be overstated given that the two are considered some of economics' most fundamental concepts. In this text, I explain both the demand and supply for Anheuser-Busch's products. Further, I identify some of the substitute and/or complementary goods for Anheuser-Busch's products.

• The demand of American beer has been increased in Europe, Asia and South America.

Some of the changes that Heineken has implemented during the past few years include the following: For the first time in the history of the company, the CEO is not a family member. Van Boxmeer was appointed CEO although the family still maintains the controlling share of the company’s stock. They developed a plan called Fit 2 Fight which made several changes. Most of them aimed at streamlining management. They cut the executive board from 5 members down to three. The new board is made up of the CEO, COO, and CFO. The change is expected to assist the company in thinking about the steps that it needs to take to win over younger customers across different markets whose tastes are still developing. Heineken also created management positions that would be responsible for 5 different operating regions and nine different functional areas. These positions were created to more clearly define different spheres of responsibility. The management group was cut from 36 to 13 members in order to speed up the decision making process. Also, the

distributors, brewers and retailers. A change suggested in Grolsch’s historic strategy is not to adapt the market completely in this case because it is an industry that gives importance to the country-of-origin. Markets Targeted: South Africa: Monopoly Market, No.1 SABMiller (Market Share: 98%) Brazil: Occupied by major Brewery Groups. China: Competitive Market. How to Compete: South Africa Brazil China Additional Line with SABMiller Co-Promotion with SABMiller

SABMiller and Diageo are two largest beer producer in Africa. ”SABMiller, if combined with its partnership with France's Castel Group, sells roughly 60% Africa’s beer by volume. Diageo’s also expands its operation successfully that Senator Keg, its supercheap beer, is also now number two most popular beers in Kenya. As these giant brewers monopolized Africa’s beer market, it can be said that the market has an oligopoly market structure, and both pursue identic operations, so the market can be labeled as competitive. The interdependence that is happening between both brewers makes the competition happens. As SABMiller produces Impala that is half price from its previous beer Manica, Diageo produces Senator Keg to balance it. Diageo

Political –Governments tend to exercise significant control over beer as it contains alcohol which has caused many problems in society and has addicted people. This attention from the government will affect Heineken in sale volume in the market. Many governments have imposed heavy taxes on liquor and beer imports, and with globalisation many brewers are looking for new markets where they can gain maximal profits. This proves to be a threat for Heineken. Heineken must conduct thorough research on countries policies on alcohol such as drinking in public, alcohol contents in drinks, legal drinking ages and must strategically plan their integration into these markets based on the research.

Several attempts have been made by Boston Beer Company to continue on a growth streak but not all attempts have been successful. The main goals for Boston Beer Company are to increase revenue and continue growing in the industry. Boston Beer Company has had trouble growing as barriers of entry are low and competition is high. Even though the market has seen a slight upturn, however Boston Beer’s founder Jim Koch elaborates on the company’s dissatisfaction, “We are disappointed with our depletion trends in 2016, which have remained weak so far in 2017. These trends are affected by the general softening of the craft-beer category and cider category and a more challenging retail environment with a lot of new options for our drinkers”. (https://www.fool.com/investing/2017/02/22/boston-beer-finds-growth-the-hard-way.aspx)

The Adolph Coors Case Study proved the dedication and self-reliance Coors brings to the beer industry. Having overcome great adversity by surviving the prohibition years, Coors durability and sustainability are also complimentary points on the structure of the company. Coors is a family owned company that had humble beginnings in Colorado and within 100 years grew into a multimillion-dollar company. Coors’ controlled manufacturing process is a sign of their individuality in the beer industry, this was not an unknown fact, however, as they were receiving orders to ship Coors beer all across the nation as of 1972. The case study allowed an internal and external point of view, which was highly beneficial to properly analyze their upcoming problem within the company.

The business level strategy of Heineken is to grow the business in a sustainable and

iii. Import beer companies: These companies include Beck’s(Germany), Heineken (Holland) and Corona (Mexico). They control about 12% of the region’s market. However, these companies are seen to operate at disadvantage due to higher shipping costs, weaker distribution networks and an inability to control product freshness

Anheuser-Busch is best known for the world’s two top-selling beers, Bud Light and our flagship brand Budweiser. Operating 12 breweries within and 15 breweries outside of the United States, Anheuser-Busch brews more than 40 varieties of beer and alcohol beverages.

2》 Other beer brands have occupied large market capacity, market share of Carlsberg and Budweiser far exceeds that of Tsingtao beer

Rivalry in the craft beer industry is high and in addition to the excise tax and overall high manufacturing cost have promoted mergers and acquisitions in order to consolidate and globalize the industry. Anheuser-Busch InBev merged with Belgium-based Inbev as one of the major transactions in 2008, forming Anheuser-Busch InBev. Heineken (HEINY) another major brewer, acquired the beer business of FEMSA in 2010. As in 2013, Anheuser- Busch InBev one of the market leaders acquired Grupo Modelo, Mexican brewer. In the following year 2014, Anheuser- Busch InBev reacquire Oriental Brewery, South Korea brewer. (Sharon Bailey) The acquisitions combined their market share and currently owns 41.2 percent of the US market.(Statista)

The nation of Myanmar, also known as Burma, is currently under the rule of a ruthless totalitarian regime, guilty of numerous human rights violations and target of intense international criticism. Located in Southeast Asia, on the western border of Thailand and Laos, it has been under military rule since World War II. Burma is mired in socioeconomic crisis stemming from the rule of the military junta, and the citizens are suffering. The environment of Burma is being destroyed, the people are treated inhumanely, and the country is notorious for its contribution to global narcotics. The paragraphs below detail the current situations facing the country, why they came about, and the parties that are to blame for

Baosteel and Posco : Each company agreedto invest US125 million to acquire a stake in the other, with this stake being less than 0,5 %