Brasseries Kronenbourg Case Study
Brasseries Kronenbourg Case Study
The ‘Brasseries Kronenbourg’ case study1 describes the strategy of the main company within the beer division of the Danone Group. In this case study analysis I will consider the resources, core competencies and sources of competitive advantage that have shaped Brasseries Kronenbourg’s international strategy.
Resources
The resources of Brasseries Kronenbourg are fundamental in shaping the company’s strategy. Their resources can be best outlined though a resource audit under the following categories:
Physical – domestically (France) the company has access to large breweries capable of producing upwards of 10 million hectolitres2 and in 1994 invested an additional FF292 million in industrial plant and equipment. Also has access to some international breweries through acquisitions including in Spain and Greece. On the distribution side domestically the company had acquired 60 warehouses.
Human – following a shift in focus to automation in the 1980s, the company entered a phase of restructuring. Levels of hierarchy were removed and 570 jobs were phased out. However, the company has sought to encourage professional development and to develop staff skills through personal training and apprenticeship schemes.
Financial – Brasseries Kronenbourg has a strong balance sheet3 showing significant profits year on year. The company is also has the benefit of being backed by its parent group Danone which is described as the third leading food marketer in Europe.
Intangible – the company has a product range of 28 brands, which includes a diverse portfolio of mass-market, high-end, specialty and niche (low alcohol/non-alcoholic).
These are the resources available to Brasseries Kronenbourg, but it is the way in which they are utilised that identifies the core competencies of the company.
Core Competencies
The case study concentrates on the international strategy of the Brasseries Kronenbourg company and it is clear
The ‘Brasseries Kronenbourg’ case study1 describes the strategy of the main company within the beer division of the Danone Group. In this case study analysis I will consider the resources, core competencies and sources of competitive advantage that have shaped Brasseries Kronenbourg’s international strategy.
Resources
The resources of Brasseries Kronenbourg are fundamental in shaping the company’s strategy. Their resources can be best outlined though a resource audit under the following categories:
Physical – domestically (France) the company has access to large breweries capable of producing upwards of 10 million hectolitres2 and in 1994 invested an additional FF292 million in industrial plant and equipment. Also has access to some international breweries through acquisitions including in Spain and Greece. On the distribution side domestically the company had acquired 60 warehouses.
Human – following a shift in focus to automation in the 1980s, the company entered a phase of restructuring. Levels of hierarchy were removed and 570 jobs were phased out. However, the company has sought to encourage professional development and to develop staff skills through personal training and apprenticeship schemes.
Financial – Brasseries Kronenbourg has a strong balance sheet3 showing significant profits year on year. The company is also has the benefit of being backed by its parent group Danone which is described as the third leading food marketer in Europe.
Intangible – the company has a product range of 28 brands, which includes a diverse portfolio of mass-market, high-end, specialty and niche (low alcohol/non-alcoholic).
These are the resources available to Brasseries Kronenbourg, but it is the way in which they are utilised that identifies the core competencies of the company.
Core Competencies
The case study concentrates on the international strategy of the Brasseries Kronenbourg company and it is clear