Heineken Swot Analysis

Topics: Strategic management, Brand, Trademark Pages: 3 (912 words) Published: June 29, 2012
Problem Statement
Heineken needs to remain a global competitor that caters to different generation groups worldwide; create new products that complement consumer culture differences in the global market; build partnerships, mergers and acquisitions with new brewers/distributers in other countries to expand their consumer base and global footprint. SWOT Analysis

Internal Strengths
Continual steady increases in total revenue per year. (Exhibit 1) In January 2009 the company expected to announce a 5% profit growth for 2008 in spite of the tougher economic climate. •The venture with Scottish & Newcastle increased brand recognition, established Heineken as a leading brewer in Europe, and increased presence in crucial European markets such as the United Kingdom, Ireland, Portugal, Finland and Belgium. •With leading brands of Heineken, Amstel, and 170 other beer brands in more than 150 countries around the world, Heineken has become a forerunner with a global strategy. •The company has a little over 8% of the worldwide market for beer in 2008 and in 2007 Heineken ranked 3rd in Annual Sales of Leading Brewers (Exhibit 1). •The company has a solid brand image and easily identified products worldwide. oThe firms dominant brand of Heineken was ranked second only to Budweiser in a global brand survey and the stubby green bottle was the only recognized bottle amongst marketing students in a recent survey. Internal Weaknesses

Due to the economic decline in several countries and to the increased global competition Heineken has had decreasing profit margins from 2006 to 2008 (Exhibit 1). •Decreasing revenue sales in the Asia Pacific for the last three years with a decrease from 560 million euros to 245 from 2006 to 2007 (Exhibit 1). •Historically the company has had a cumbersome consensus culture that did not allow them to respond quickly to challenges in a time when the industry face considerable change. •Prices of various commodities are increasing and...
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