啤酒商务展示heineken

HEINEKENCASESTUDYOverviewCorporateObjectiveandgoalsbeerindustryoverviewProblems5forcesSWOTanlaysisValuechainanalysisSolutionsHeinekenOverviewoneoftheworld’sleadingbrands>130years.Number2importedbeerinU.S.Number1inEuropeglobalnetworkofdistributorsand115breweriesinmorethan65countriesPremierbrands–Heineken,AmstelLightOrganizationgoalsandobjectivesAimsforsustainablegrowthasabroadmarketleaderandsegmentleadershipExpandandoptimizeproductportfolioembracedinnovationasakeycomponentoftheirstrategyintheareasofproduction,marketing,communicationandpackaging.Goalistogrowthebusinessinasustainableandconsistentmanner,whileconstantlyimprovingprofitabilityPrioritytoreachgoal1.toacceleratesustainabletop-linegrowth.2.toaccelerateefficiencyandcostreduction.3.tospeedupimplementation:wecommittofasterdecisionmakingandexecution.

4.tofocusonthosemarketswherewebelievewecanwin.ProblemLosingImportbeermarketshareProblem:ThematuringcompetitiveBeerIndustryIntroductionEmergenceMaturityDeclineDemand(units/year)TimeBeerIndustryOverviewBeerIndustryOverview37%ofU.S.adultsarebeerdrinkersBeeristhemostwidelypurchasedalcoholbeverageBeerindustryisprojectedtogrowsteadilyCompetitionBasicallyit’s“eatorbeeaten”EverycompanyisjusttryingtostrengthentheirglobalpositionanywaypossibleBiggestrivalsincludeInBevandGrupoModeloMergersandAcquisitionsSouthAfricanPLCcombinedwithMillerInterBrewandAmBevmergedin2004,andnowacquiredAnheuser-BuschCoorsacquiredMolsonAnheuser-BuschinpartnershipswithGrupoModeloandTsingtaoBusinessStrategyoftheIndustryGrowexternallytostrengthenthepositionofthecompanyindevelopedmarketsaswellasmaximizingpotentialforprofitinhigh-growthmarketsBasicallydowhateverisnecessarytogetyourcompanyrepresentedaroundtheworldHeinekenwasthepioneerofthisstrategy,becomingthefirstbrewertocutdealstodistributeworldwideIndustryOutlookBiggerbrewersacquiringsmallerbrewersallovertheworld“Theeraofglobalbrandsiscoming.”–AlanClark,SABMillerMarketforpremiumbeerwillexpand84%by2012ValueChainAnalysis

(PrimaryActivities)InboundlogisticsHeinekenisdistributedglobally,storedinwarehousesstrategicallyplacedthroughouttominimizeshippingcoststostores.OperationsHeinekenwaslimitedtograbbingsmallerbrewersbutin2003,itacquiredBBAGfor$2.1billiondollarsmakingitthebiggestbeermakerinsevercountriesacrossEasternEurope.OutboundlogisticsHeinekenhasbrewersthroughouttheworldsothatitcanshipitsfinishedproductstolocalareastominimizeshippingcosts.MarketingandsalesHeinekenisthe5thmostrecognizedbrandofbeerintheworld.Byacquiringsmallerbrewersintheworldtheyspreadtheirlabelevenmore.ServiceHeinekenhasrecentlyventuredoutinthefieldsofnonalcoholicmaltsandfruitflavoreddrinksasanavenueintoothercustomerareas.ValueChainAnalysis

(SecondaryActivities)GeneralAdministrationHeinekenwastheleadingpremiumbrandofbeerfordecades.WasthebestsellingimportedbeerintheUSuntilCoronatookover.So,atthesametimeHeinekenpushedonotherbrandsthatwouldreduceisrelianceonitcorebrand.IntroducingAmstelLight,whichhasbecometheleadingimportedlightbeerintheUS.HumanResourceManagement:Heinekencreatedmanagementpositionsthatberesponsibleforfivedifferentoperatingregionsandninedifferentfunctionalareas.Thenewstrictureencouragedmorerisktakingandboostedthelevelofenergywithinthefirm.TechnologyDevelopment:Heinekenusestheirtechnologytokeepdetaileddocumentsofshipping,intheirwarehousestomakebeermoreefficientlyandforshippingpurposes.Porter’s5ForcesofcompetitionIndustrycompetitors++RivalryamongexistingfirmsSuppliers

+/-Substitutes+Buyers+Newentry-

Threatsofsubstitutes

ThreatsofnewentryverylittletechnicalcompositionofbeersGrowingappreciationforwine$250millionneededtobuild4millionbarrelbreweryEntryisriskysincenotmanyalternativeusesforbreweriesNonewentrantinbeerindustryhascrackedthetop3sellerssinceWWII.Porter’s5Forcesofcompetition

BargainingPowerofBuyers

BargainingPowerofSuppliersNoloyaltytoanyparticularbrandDemand“beer”isinelastic:E=-0.7Demand“Budweiser”iselastic:E=-5.0fewerbrewersandLargerplants170Horizontalmergersbetween1950-1983Risingcostofkeycommoditieslikegrain,glassandaluminumManyBuyingsupplierofinputs(wheatfield)Porter’sFiveForcesofcompetition

(cont’d)Porter’sFiveForcesofcompetition

(cont’d)

Rivalrybetweenestablishedcompetitors1947:Top5firms-19%ofmarketintheU.S.2001:Top5generate87%ofthemarketintheU.S.Highlycompetitiveindustry,manybrewersleavetheindustrylosing$LostofadvertisingforproductdifferentiationSWOTAnalysis

StrengthBrandsinover13marketsVeryDifferentiatedGlobalbrand/pioneerofinternationalstrategyHasmademanyacquisitionswithnationalbreweriesBottleRecognitionanddifferentdispensinginstrumentsGreenBottleMinikegSWOTAnalysis

WeaknessConservative/”Playitsafe”cultureStruggletoobtainlargebreweriesNotdrankbyyoungerbeerdrinkersAlthoughconsumptionagehasdroppedfrom40to30PricewhencomparedtoU.S.domesticbeers$10persixpack—Heineken$7persixpack--DomesticSWOTAnalysis

ThreatsIncreaseinDrunk-drivinglawsCompetitorsincreasingmarketshareU.S.IndustryMergersandacquisitionsofotherbreweriesOtherBreweriesarebecomingmuchlargerthanHeineken’sBrewery“Indangerofbecomingatired,reliable,butunexcitingbrand”JohnA.QuelchSWOTAnalysis

OpportunityLowcaloriebeerSocietyispushingfora“healthy”beerRussia/AsiaPopulationincreasingdramaticallyHavegreatermarketshareHispanicconsumer’saregrowingrapidlyU.S.IndustryU.S.PopulationGrowthFinancialInformation200520062007ROE21.1%27.0%15.5%EPS1.711.902.29InterestRatio14.819.722.7LiquidRatio.901.09.95SolutionsNeedtogrowintheU.S.industryIncreaseadvertisingonTecateandDosEquisKeepadvertisingtoyoungbeerdrinks&HispanicpopulationTapintobeerswithfewercaloriesandlowercarbohydrates(>50%ofbeermarket)SustainglobalcompetitionKeepbuyingmorenationalbreweriesgloballyIncreaseawarenessofallnationalbreweriesCan’tobtainRecommendationsIncreaseAdvertisingAdvertisingtowardyoungpeopleSpanish-languageadvertising