What strategies has Heineken pursued in an effort to remain competitive in the global beer industry? Going forward, what strategies do you suggest Heineken pursue to become a major competitor in the era of global/major brands?
Heineken has undertaken several strategic approaches to propel themselves as a top brewer in Western Europe. Previously managed and ran only by the “family,” in which created Heineken, a non-Dutch, non-family member CEO has been appointed to help Heineken generate goals to globalize their brand as well as enter more markets. The case discusses Heineken’s recent acquisition of the Scottish-based brewer Scottish & Newcastle. Before, Heineken focused most of its attempts in pushing the flagship brand in smaller markets by acquiring breweries that market only to their smaller national areas. Another strategic objective of Heineken is to create (or according to their website, now distribute) Strongbow cider. Cider beverages are appealing to a larger mass and have been quoted to grow at a rate of 20 percent. An additional effort of Heineken is to market to the Hispanic population. Corona has recently surpassed Heineken as the import beer of choice for Americans. Marketing efforts tailored at the Hispanic population, in addition to marketing and distributing Tecate and Dos Equis, will increase market share for the flagship brand. Efforts like this to create products and reposition the company to attract greater market share are attempts that Heineken has undertaken in order to rise as a global beer industry leader. Heineken also facilitates the process of operational decision-making as well as being a cost-leader. Their approaches of being cost-conscious and differentiating their products as premium beverages have led to their growth as a successful brewery. Although these strategies have generated value in the eyes of markets that previously were not accessible (before acquisitions with smaller brewers), these strategies will...
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