The German Beer Industry: Case Study

2681 Words Nov 4th, 2013 11 Pages
Coursework: Economic & Political Environment of International Business

Is the End of the German Beer Industry Near?

1. Discuss how the changing technological environment present international threats and opportunities to the German beer industry.

To discuss how changing technological environment presents international threats and opportunities for the German beer industry, the term of changing technological environment has to be explained. The literature distinguishes between a micro environment and a macro environment. Micro environment concludes factors, which are directly influenced by a company. These factors are organizational – Marketing-Mix, Structure, processes etc. Macro environment contains political decisions,
…show more content…
In times of cheap mass-production there are still customers, who are ready to pay more for quality – according to the case study the same applies to emerging markets. So local German breweries could use their quality as a unique selling proposition and start to cooperate and get together by mergers for instance to share costs and risks of overseas operations. It is logical, that only a few German breweries will be able to invest in international operations, because of small financial resources. Therefore maybe only 100 of the 1300 German breweries will stay alive in future – but these breweries will be strong enough to create an availability of German beer internationally.
One opportunity for German breweries is to expand to emerging markets like China then, where according to the study customers are ready to pay for quality, as we mentioned. Producing towards the Reinheitsgebot promises that required quality. Referring to the Paper that most of the small German breweries got small financial resources and no experiences in overseas markets, so cooperation with another famous German brewery, as we mentioned, or a joint venture in a foreign country like China to reduce certain risks, costs and gain specific market knowledge, could be profitable.
The infrastructure, especially communication and information channels to gain knowledge about local preferences will enhance the way of doing business there.
Open Document