Grolsch suggestions
What other changes would you suggest to Grolsch's historical strategy or historical mode of entry?
Although Grolsch achieves great success in global market, there are still some suggestions I want to give to its historical strategy.
First, there is high shipping cost in certain import countries due to the geographic segmentation such as US, Canada, Australia and some of the Grolsch’s global markets have high transport cost. And there is high segment of selling revenue is from US which means that Grolsch should focus more on the distribution part on US to reduce the cost and get the higher profit.
Second, I suggest the Grolsch should focus more on the globalization of the Grolsch instead of the Amsterdam because Grolsch Premium Lager, represented 90% of the company’s domestic volume and two-thirds of all exports belongs to Grolsch Premium which sold in many markets globally. However, I also suggest Amsterdam only selling on North Europe not only because Amsterdam only distributed small amounts of beer such as Grimbergen but also the transition fee is relatively high compared with Grolsch which have large amount to sell and export. Furthermore, to expand the globalization is costly for the Amsterdam compared with Grolsch Premium because the Grolsch already have the market and reputation in foreign countries.
Thirdly, I think Grolsch should get improvement in own company instead of merger other company until it has been stable. Because as we seen from the last question, the Grolsch failed twice in getting new merger which increased large amount of cost which can be avoided.
Although Grolsch achieves great success in global market, there are still some suggestions I want to give to its historical strategy.
First, there is high shipping cost in certain import countries due to the geographic segmentation such as US, Canada, Australia and some of the Grolsch’s global markets have high transport cost. And there is high segment of selling revenue is from US which means that Grolsch should focus more on the distribution part on US to reduce the cost and get the higher profit.
Second, I suggest the Grolsch should focus more on the globalization of the Grolsch instead of the Amsterdam because Grolsch Premium Lager, represented 90% of the company’s domestic volume and two-thirds of all exports belongs to Grolsch Premium which sold in many markets globally. However, I also suggest Amsterdam only selling on North Europe not only because Amsterdam only distributed small amounts of beer such as Grimbergen but also the transition fee is relatively high compared with Grolsch which have large amount to sell and export. Furthermore, to expand the globalization is costly for the Amsterdam compared with Grolsch Premium because the Grolsch already have the market and reputation in foreign countries.
Thirdly, I think Grolsch should get improvement in own company instead of merger other company until it has been stable. Because as we seen from the last question, the Grolsch failed twice in getting new merger which increased large amount of cost which can be avoided.