Strategic Bgd
1.Consider the strategic position of BGD (strengths and weaknesses) and the firm’s strategic capabilities (core competencies). How company can coexist with giant competitors in an international context? (40%)
2.Identify the common elements in the strategies pursued by BGD in its different markets (use Porter’s Generic strategies or Strategic clock). What about strategy implementation and the winning formula? (30%)
3.Critically assess BGD’s capability and resources to continue its international expansion. Whether the strategy being followed by Claus Nielsen could be continued in its present form? (30%)
(Strengths:
Second largest brewer in Denmark
Worldwide position in many countries
Major part of product exported
Merges with strong position breweries
Qualified managers in brewery
Strategic joint ventures
Strong brand image
Wide range of products
Economy of scale with similar products
Weaknesses:
Only national products
No international brand to reduce costs of local infrastructures)
In an international context, a company needs a specific strategy to export its products confronted to giant competitors.
In the case of BGD, this strategy consists in differentiation. Indeed, BGD uses its product for local markets, with specific product. For example, it proposes a non-alcoholic beer in Caribbean according to locals’ attempts and the product also corresponds to young people and women. Or it also proposes premium products in China in regions with high positional income where wealthy people are more present.
So, the product is different and adapted to niche markets which oust big competitors. By the way, the product becomes difficult to imitate and prompt competitors to licence the product.
This strategy also increases the advantages perceived by the consumer. Indeed, as it is adapted to the local market, it corresponds to the consumers attempts whereas giant competitors only sell or retail their products adapting them to the various markets.
2.Identify the common elements in the strategies pursued by BGD in its different markets (use Porter’s Generic strategies or Strategic clock). What about strategy implementation and the winning formula? (30%)
3.Critically assess BGD’s capability and resources to continue its international expansion. Whether the strategy being followed by Claus Nielsen could be continued in its present form? (30%)
(Strengths:
Second largest brewer in Denmark
Worldwide position in many countries
Major part of product exported
Merges with strong position breweries
Qualified managers in brewery
Strategic joint ventures
Strong brand image
Wide range of products
Economy of scale with similar products
Weaknesses:
Only national products
No international brand to reduce costs of local infrastructures)
In an international context, a company needs a specific strategy to export its products confronted to giant competitors.
In the case of BGD, this strategy consists in differentiation. Indeed, BGD uses its product for local markets, with specific product. For example, it proposes a non-alcoholic beer in Caribbean according to locals’ attempts and the product also corresponds to young people and women. Or it also proposes premium products in China in regions with high positional income where wealthy people are more present.
So, the product is different and adapted to niche markets which oust big competitors. By the way, the product becomes difficult to imitate and prompt competitors to licence the product.
This strategy also increases the advantages perceived by the consumer. Indeed, as it is adapted to the local market, it corresponds to the consumers attempts whereas giant competitors only sell or retail their products adapting them to the various markets.