Porter Five Forces on the Western Beer Brewing Industry

Introduction
This case shows how global forces have impact on European brewing industry and how these companies are trying to overcome the obstacles. In spite of restrictions and awareness campaigning runned by the government, these companies are trying to grow through acquisitions, alliances and closures within the industry. Companies are concentrating on expanding their existence into other markets. Some other companies are concentrating on innovation, branding. Moreover they are fighting on cost cutting such costs include packaging costs which will reduce the cost of overall manufacturing.

PESTEL ANALYSIS OF EUROPEAN BREWING INDUSTRY

Political
* Government organising public events in order to make public aware about the effects of alcohol consumption on the health. * Government is imposing restrictions on consumption of beer and alcohol products. * If anyone is influenced by alcohol in doing crime they are fined with high penalty.

There is an overall decline of consumption of Beer in Europe as many traditional key markets have been made increasingly aware of the social problems associated with alcohol consumption. Factors could be the active campaign of European governments against drunken driving, binge-drinking and consequently the long term health and fitness problems.
This initiative taken by the government was one of the reasons that transformed the buying behaviour of European market. Though would be classified under the head of social analysis the government intervention has caused the change in buying behaviour.

Economical
* The government restrictions have lead to increase in sales of alcohol in supermarket.
* Government campaigning and restriction on drinking resulted in decrease in the sale of alcohol product consumption in clubs and pubs.
* Companies are trying to achieve economic of scale through cost reduction.
* Brewing companies are engaged in various marketing strategy to grow their market through acquisition, mergers