Grolsch Global Strategy

Executive Summary Grolsch, a company with a strong history and a highly rated product, has just been purchased by SABMiller. The company is evaluating its global strategy in light of the acquisition and determining how to position and sell its beer going forward. Grolsch has positioned itself well to compete internationally and has leveraged several tools (e.g. the MABA framework, strategic analysis) to effectively expand abroad. However, they must assess whether or not the MABA framework is still useful, what type of international strategy they should pursue (i.e. developed vs. developing markets), and if their adaptation strategies will continue to be an asset in their business development. The initial conclusion, detailed below, is that Grolsch should expand the MABA framework while also leveraging and recognizing the value of SABMiller’s distribution network. They need to maintain focus on international markets, looking at both developed and developing markets to diversify growth opportunities. Success for Grolsch depends on how well they can identify markets where their high-end, premium product will be desirable. But, it will also depend on their ability to adapt the brand image and marketing approach based on the cultural differences of the foreign markets they enter. The subsequent presentation contains exhibits and analysis that support and further develop these conclusions.
Industry overview
Before assessing Grolsch’s global strategy and approach, it is important to understand the beer industry overall from a strategic perspective. Two helpful methods for doing this are Porter’s Five Forces and a PEST analysis. Analyzing Porter’s Five Forces for the beer industry can provide insights into the reasons for the underlying economics and general competitive situation (see exhibit 1). The five aspects include competitor rivalry, suppliers, buyers, substitutes, and new entrants / barriers to entry. A PEST analysis helps in understanding the