Table of Contents
Problem Statement 3
Symptoms 3
Problem Analysis 3 Boston Consulting Group Matrix 3 Porters Five-Forces Model 4 Product Life Cycle 6 Generic Strategies 6
Alternatives 7 Alternative 1: Global Strategy 7 Alternative 2: Multidomestic Strategy 7 Alternative 3: Transnational Strategy 8
Recommendation 8
Implementation 9
Appendices
Appendix 1 – Boston Consulting Group Matrix 11
Appendix 2 – Porters Five-Forces Model 12
Appendix 3 – Product Life Cycle 13
Appendix 4 – Generic Strategies 14
Appendix 5 – Opposing 15
Appendix 6 – Balanced Scorecard 16
Appendix 7 – Value Chain 17
Appendix 8 – Resource Based View 19
Problem Statement
Interbrew has shown rapid growth throughout the 90’s, increasing its total volumes more than fourfold, and becoming the world’s fourth largest brewer. As of 2000 they are faced with a decision as to what direction the company should take in order to continue this growth they have experienced. Therefore Interbrew must make a decision as to what direction the company should choose in moving forward. Therefore the question is what strategy should Interbrew pursue in order to see sustained growth in sales volume in the markets in which it operates?
Symptoms
1) Declining sales in the Belgian domestic market
(This decline in the domestic market is hurting the sales that Interbrew is normally used to seeing)
2) Beer consumption in mature markets (such as North America, Western Europe, Australia, New Zealand) is forecasted to decline
(These markets make up a majority of sales for Interbrew, so a decline in their consumption will hurt their total sales)
3) Top players in the beer industry only account for 22% of global volume, which is a low figure, compared to industries such as tobacco (60%) and spirits (44%)
(This is an opportunity for Interbrew to increase its sales volume as there is a lot of potential for consolidation)
4) No market presence