Heineken Case Study1
Heineken Case Study
MBA650 Business Policy
John F.
Abstract
Heineken is a major competitor in the mass production beer industry. The firm is facing internal and external environment challenges which are affecting its sales and profitability. The corporation is involved in a competitive, concentrated, and differentiated industry that has allowed major rivals to achieve growth through mergers and acquisitions. The case study addresses the issues that the organization is encountering. The company is facing declining sales due to changing consumer tastes and increased competitive pressure. Heineken is attempting to increase sales and retain its position as a premium beer, but is faced with a lack of support from two key demographic groups which includes Hispanic American 's and young Americans (Dess, Lumpkin, Eisner & McNamara, 2012). The team conducted a case study of the firm, and its market environment, utilizing value chain analysis, and Porter’s Five Forces. Recommendations and alternative strategies were developed to increase the position of the Heineken brand and regain sales from Hispanic Americans and young Americans. The implementation of the recommendations and alternative strategies may increase Heineken’s opportunity of sustainable long term growth within the industry.
Introduction
Heineken is the third largest brewer in the world and currently distributes more than 170 brands of beer in over 150 countries worldwide. However, over the past decade Heineken has faced some growth problems associated with the tougher drinking and driving laws in the U.S, a growing consumer appreciation of wine, and the decline of Heineken as the most popular import brand. The growth of the Hispanic population in the U.S. has allowed for the sales of Corona to exceed Heineken for over a decade now (Dess et al., 2102).
Currently Heineken has made significant changes within the company. In 2005, Heineken appointed Jean Francois Van Boxmeer to be the first non-Dutch
MBA650 Business Policy
John F.
Abstract
Heineken is a major competitor in the mass production beer industry. The firm is facing internal and external environment challenges which are affecting its sales and profitability. The corporation is involved in a competitive, concentrated, and differentiated industry that has allowed major rivals to achieve growth through mergers and acquisitions. The case study addresses the issues that the organization is encountering. The company is facing declining sales due to changing consumer tastes and increased competitive pressure. Heineken is attempting to increase sales and retain its position as a premium beer, but is faced with a lack of support from two key demographic groups which includes Hispanic American 's and young Americans (Dess, Lumpkin, Eisner & McNamara, 2012). The team conducted a case study of the firm, and its market environment, utilizing value chain analysis, and Porter’s Five Forces. Recommendations and alternative strategies were developed to increase the position of the Heineken brand and regain sales from Hispanic Americans and young Americans. The implementation of the recommendations and alternative strategies may increase Heineken’s opportunity of sustainable long term growth within the industry.
Introduction
Heineken is the third largest brewer in the world and currently distributes more than 170 brands of beer in over 150 countries worldwide. However, over the past decade Heineken has faced some growth problems associated with the tougher drinking and driving laws in the U.S, a growing consumer appreciation of wine, and the decline of Heineken as the most popular import brand. The growth of the Hispanic population in the U.S. has allowed for the sales of Corona to exceed Heineken for over a decade now (Dess et al., 2102).
Currently Heineken has made significant changes within the company. In 2005, Heineken appointed Jean Francois Van Boxmeer to be the first non-Dutch
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