BREWING ARTICLE
PESTEL analysis of Western European Brewing
Political – The governments are strongly against drunken driving in order to reduce the number of road accidents, deaths and injuries. As people are frighten to pay such high penalty. Therefore, they drink less in public. Also WHO concern the alcohol abuse rise in teenagers and young adults. People are more awareness of health and fitness. This is another factor to reduce their drinking habits.
Economic – As the economic situation is turning bad in Europe and high unemployment rates. People will force on buying the basic needs but the non-essential products such as beer.
Social – Substitute drinks are competitive in the market such as non-alcoholic beers and wine. Similarly people are more concern on health, so they will prefer non-alcoholic drinks. Wine selling is rising in Europe as well.
Technological – The premium products such as cold lagers or fruit-flavored beers sales values are rising in the market due to changes of consumers taste. For the high technology and the possibility of the raw material, it can be satisfy the consumer needs.
Environmental – As of the social responsibility, most of the organization try to prevent environmental pollution. The manufacture can use the recycle material to product the cans then recycle it in order to save the cost.
Legal – There are consumer law and competition law to protect the consumer of misleading descriptions of the products and small company against bullying by large firm which the consumer will not feat by the monopoly power.
Porter Five Forces of Western Europe Brewing
Threat of New Entrants – The breweries can enter the market through mergers, acquisitions or alliances. Consequently the barrier of new entrants is low.
Competitive Rivalry –Most of the competitors are cross-border mergers. For example, Belgian Interbrew merged with Brazilian AM Bev become InBev the largest brewer in the world which mean it’s high in the market.
Threat of Substitutes...
Political – The governments are strongly against drunken driving in order to reduce the number of road accidents, deaths and injuries. As people are frighten to pay such high penalty. Therefore, they drink less in public. Also WHO concern the alcohol abuse rise in teenagers and young adults. People are more awareness of health and fitness. This is another factor to reduce their drinking habits.
Economic – As the economic situation is turning bad in Europe and high unemployment rates. People will force on buying the basic needs but the non-essential products such as beer.
Social – Substitute drinks are competitive in the market such as non-alcoholic beers and wine. Similarly people are more concern on health, so they will prefer non-alcoholic drinks. Wine selling is rising in Europe as well.
Technological – The premium products such as cold lagers or fruit-flavored beers sales values are rising in the market due to changes of consumers taste. For the high technology and the possibility of the raw material, it can be satisfy the consumer needs.
Environmental – As of the social responsibility, most of the organization try to prevent environmental pollution. The manufacture can use the recycle material to product the cans then recycle it in order to save the cost.
Legal – There are consumer law and competition law to protect the consumer of misleading descriptions of the products and small company against bullying by large firm which the consumer will not feat by the monopoly power.
Porter Five Forces of Western Europe Brewing
Threat of New Entrants – The breweries can enter the market through mergers, acquisitions or alliances. Consequently the barrier of new entrants is low.
Competitive Rivalry –Most of the competitors are cross-border mergers. For example, Belgian Interbrew merged with Brazilian AM Bev become InBev the largest brewer in the world which mean it’s high in the market.
Threat of Substitutes...