Strategic Analysis Heineken
Strategic Analysis: Heineken NV
David Ouahba
Richard Disrude
Patrick Biggs
Table of Contents
Executive Summary:
Company Background:
Industry Description
Porter Five Forces Analysis of Industry
Company Resources, Activities, and Capabilities
S.W.O.T. Analysis
Company Strategies
Recommendations
Bibliography
Executive Summary:
Company Background:
Industry Description
Porter Five Forces Analysis of Industry
Bargaining Power of Suppliers Heineken’s suppliers of raw material are mainly farmers. Heineken currently is and will continue to make an effort towards local farmers who are more sustainable. Africa is a large supplier to Heineken of these raw materials like barley, hops, and yeast. These farmers do not want to lose the business of such a large company like Heineken. The new biofuel industry has become a large purchasing competitor to Heineken and other beer manufactures. This has increased raw material cost while also influencing the overall low bargaining power of suppliers. (SAS) Heye Glas Nederland, a German glass company, is the supplier of the world famous green bottles. They have also developed new technologies in the bottling industry. These new technologies like more efficient bottling machine have made the process more cost effective. In 2002, Heineken raised its stake in Heye Glas from 33% to 100%, in order to stabilize and secure the supply of these high quality bottles to meet the rising demand. (SAS)
Threat of New Entrants
The threat of new entrants into the beer industry is high. There are few to no barriers when entering this market. Micro and local breweries have been growing recently and have been taking some local market share away from Heineken. Craft beers focus more on taste and quality which have drawn some shoppers to choose these types of beers. There are limitless flavors in the craft beer industry from pineapple to apple pie flavored beers.
Heineken is still one of the world’s top three brewers. Heineken must
David Ouahba
Richard Disrude
Patrick Biggs
Table of Contents
Executive Summary:
Company Background:
Industry Description
Porter Five Forces Analysis of Industry
Company Resources, Activities, and Capabilities
S.W.O.T. Analysis
Company Strategies
Recommendations
Bibliography
Executive Summary:
Company Background:
Industry Description
Porter Five Forces Analysis of Industry
Bargaining Power of Suppliers Heineken’s suppliers of raw material are mainly farmers. Heineken currently is and will continue to make an effort towards local farmers who are more sustainable. Africa is a large supplier to Heineken of these raw materials like barley, hops, and yeast. These farmers do not want to lose the business of such a large company like Heineken. The new biofuel industry has become a large purchasing competitor to Heineken and other beer manufactures. This has increased raw material cost while also influencing the overall low bargaining power of suppliers. (SAS) Heye Glas Nederland, a German glass company, is the supplier of the world famous green bottles. They have also developed new technologies in the bottling industry. These new technologies like more efficient bottling machine have made the process more cost effective. In 2002, Heineken raised its stake in Heye Glas from 33% to 100%, in order to stabilize and secure the supply of these high quality bottles to meet the rising demand. (SAS)
Threat of New Entrants
The threat of new entrants into the beer industry is high. There are few to no barriers when entering this market. Micro and local breweries have been growing recently and have been taking some local market share away from Heineken. Craft beers focus more on taste and quality which have drawn some shoppers to choose these types of beers. There are limitless flavors in the craft beer industry from pineapple to apple pie flavored beers.
Heineken is still one of the world’s top three brewers. Heineken must