Heineken Swot Analysis
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. o The 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
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. o The 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