Mexico and Heineken
Course: Emerging Markets IBMEM108R3
1. PESTLE-Analysis of Mexico
2. Hofstede-Analysis of Mexico
4. Uncertainty avoidance
5. Long term orientation
3. Investment opportunities Mexico
2. Value chain
3. Selling the premium lager ‘Heineken’ in Mexico
7 4. Chosen strategy
4. The future of Mexico
5. Ethnical challenges
2. Drugs and crime
6. How to business in: Mexico!
-Geert Hofstede’s Cultural Dimensions
Change is an important issue. It is difficult to adapt to change but in business sometimes there is no other solution. In this report, there will be a closer look on, how you can enter an emerging market. In this report will reveal insights in Mexico as emerging market. Heineken is a well established brand, but can still win a lot of market share in emerging markets. Therefore we will give some guidelines, of how Heineken can enter the Mexican beer market. This is a general overview of the research method conducted:
Is there need for Heineken beer in Mexican market?
To answer this research question, we make use the Cultural Dimensions from Mr. Hofstede and the Pestle analysis founded by Mr. Porter.
An extensive desk research brought us a lot of facts, with the provided information on mostly from the internet and a interview with Mr. Bakker from Heineken conducted by a Dutch student we were able to write this report.
The final goal of this report is to clarify where Heineken could invest and if there is need for premium beer in the Mexican market. 1.
PESTLE-Analysis of Mexico
The politics of Mexico take place in a framework of a federal presidential representative democratic republic whose government is based on a congressional system, where by the president of Mexico is both head of state and head of government, and of a multi-party electoral system. The federal government represents the United Mexican States and is divided into three branches: 1.
The economy of Mexico is 11th to 13th largest in the world. Since the 1994 crisis (Mexican peso crisis), administrations have improved the country's macroeconomic fundamentals. Mexico was not significantly influenced by the recent 2002 South American crisis, and has maintained positive, although low, rates of growth after a brief period of stagnation in 2001. The economy contains rapidly developing modern industrial and service sectors, with increasing private ownership. Recent administrations have expanded competition in ports, railroads, telecommunications, electricity generation, natural gas distribution and airports, with the aim of upgrading infrastructure. As an export-oriented economy, more than 90% of Mexican trade is under free trade agreements (FTAs) with more than 40 countries, including the European Union, Japan, Israel, and much of Central and South America. The economy took a great hit during the financial crises starting in 2008, but the recovery is in progress and the economy is getting back on its feet. Government...
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