Topics: Economics, Adaptation, International trade Pages: 1 (306 words) Published: October 28, 2012
• Grolsch decided to globalize given the domestic market stagnation and shrinkage. • Also, seeing its archrival Heineken making headway in the global market, Grolsch found the opportunity of global expansion hard to let go. • Initially, it encountered few failed Joint Ventures and lost stakes in Russia during the Asian Financial Crisis. However, it regained its market position and by 2007 it was generating 51.5% of revenue from international sales. • The key elements of its emphasis on adaptation are:

1) Adapted focus and growth target core markets – Allowed Grolsch in prioritizing and focusing on expansion in key markets. 2) Adapted Brand strategy - The use of different advertising campaign to reflect the preferences of different customers helped make a connect with the international customer. Limitations:

Adapted production and internal logistics – Exploitation of labor in low-cost countries to reduce cost of production. • According to Grolsch’s history the company should expand in a market which has enough overlaps with the home country in terms of culture, geography, economy and administration. • MABA is a tool used by the employees to judge the ranking/standing of a country in terms of investment priority after assessing various factors to judge the distance between the new market and the home market. For eg: Language difference (Cultural), EU Membership (Administration), cost of transport (Geography) and GDP (Economic) are factors for Market Assessment and total volume growth, variable commercial contribution and share of premium lager segment are factors of Business Assessment. • According to Grolsch the best way to enter a market is in cooperation with importers, distributors, brewers and retailers. • A change suggested in Grolsch’s historic strategy is not to adapt the market completely in this case because it is an industry that gives importance to the country-of-origin. US markets for example had a demand for premium beer imported from North......
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