Pestel Analysis

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PESTEL Analysis
Political
The government reduced drinks driving and binge drinking have resulted in a decline in beer consumption. Also, the introduction of the 'No Smoking in public buildings' law would have an impact on people drinking in pubs. Economical

Whilst sales volume have fallen, sale value has increased. This is due to premium products such as fruit beers. Large supermarkets are offering cut price deals to entice customers into their shops. There has been a high rise in packaging costs.

Social
The first decade of the 21st century saw a fall in beer consumption in the UK and Germany. Wine was becoming more popular.
Shift from 'on-trade' to 'off trade' due to more people drinking at home, possibly due to the 'No Smoking' law. There is an increased awareness of health and fitness.
Technological
Grolsh increased their range with new flavoured beers.
Grolsh switched to single site production.
Environmental
Heineken use local companies to introduce their product to new markets, thus sustaining local economy. Legal
Grolsh hold the rights for sale and distribution of Miller brand. Acquisitions and mergers can obtain a bigger market share and reduce competition. Introduction of the 'No Smoking in Public Buildings' law.

Porters Five Forces Analysis
Porters five forces analysis is a framework useful to managers of an organisation to understand the competitive forces within their industry. The five forces are; > The threat of entry
> The threat of substitutes
> The power of the buyer
> The power of the supplier
> The extent of rivalry
The threat of entry
The threat of entry would be low in the brewing industry because of the high capital investment required to be able to compete on a European scale
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