INTRODUCTION
Beer industry is one of the oldest industries particular in EU as it is one of the biggest beer consumption markets. This industry has seen fluctuation of the demand and consumption of the beer over the last quarter of 20th century due to many factors. This analysis will look in to those factors by taking into account the case given and will analyze the general reasons, growth and effects of the industry keeping in mind the macro-environment and its main component such as political, legal, environmental, economical, technological, social- cultural, and international aspects.
Furthermore industry analysis will be discussed in details by analyzing the critical factors such as the threats of new entrants, suppliers and buyers power on the industry, product substitutions, and alliance and merging of the companies. The details of micro-environment and industry analysis will be available in the appendices. In addition, current strategy, links between the micro-environment and industry analysis, will be discussed along with brief recommendations. The fore European brewing company will be analyzed in terms of strength and weakness.
Current strategy
The beer industry has been in the existence for as long as the barley have been harvested and used for the making of the beer. The drink is mixed with alcohol in order to give it tantalizing taste with addictive quality. The beer is used as an everyday drink by many around the world and it by creating a taste and demand in the market. It probably will not be controversial, if argued that it is in the top 5 most drinkable beverage in the world. The demand of the beer has increased significantly in the last half of the century and some cultural such as German has included it, as part of their culture and celebrates beer drinking festivals annually.
The industry has been facing some threats in the market due to increased number of brewery companies, who over supplies cheap