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Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,*,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,*,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,*,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,*,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,*,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,*,HEINEKEN CASE STUDY,Overview,Corporate Objective and goals,beer industry overview,Problems,5 forces,SWOT anlaysis,Value chain analysis,Solutions,Heineken Overview,one of the worlds leading brands 130 years.,Number 2 imported beer in U.S.,Number 1 in Europe,global network of distributors and 115 breweries in more than 65 countries,Premier brands Heineken,Amstel Light,Organization goals and objectives,Aims for sustainable growth as a broad market leader,and segment leadership,Expand and optimize product portfolio,embraced innovation as a key component of their strategy in the areas of production,marketing,communication and packaging.,Goal is to grow the business in a sustainable and consistent manner,while constantly improving profitability,Priority to reach goal,1.to accelerate sustainable top-line growth.,2.to accelerate efficiency and cost reduction.,3.to speed up implementation:we commit to faster decision making and execution.,4.to focus on those markets where we believe we can win.,Problem,Losing Import beer market share,Problem:The maturing competitive Beer Industry,Introduction,Emergence,Maturity,Decline,Demand(units/year),Time,Beer Industry Overview,Beer Industry Overview,37%of U.S.adults are beer drinkers,Beer is the most widely purchased alcohol beverage,Beer industry is projected to grow steadily,Competition,Basicallyit,s,“,“eat or be eaten”,Everycompany is justtrying to strengthentheirglobal position anywaypossible,Biggest rivalsinclude InBev andGrupoModelo,Mergers andAcquisitions,SouthAfrican PLC combined with Miller,InterBrewand AmBevmerged in2004,andnow acquired Anheuser-Busch,CoorsacquiredMolson,Anheuser-Buschin partnershipswithGrupo Modelo and Tsingtao,Business Strategy oftheIndustry,Growexternallyto strengthenthe position ofthecompany indevelopedmarkets as well asmaximizingpotentialforprofit inhigh-growth markets,Basicallydo whatever isnecessaryto get your companyrepresented around the world,Heineken was the pioneerof this strategy,becoming thefirst brewer to cutdeals todistributeworldwide,Industry Outlook,Bigger brewersacquiringsmaller brewersalloverthe world,“Theera of global brandsis coming.”AlanClark,SABMiller,Market forpremium beer will expand84%by 2012,ValueChain Analysis,(Primary Activities),Inbound logistics,Heineken is distributed globally,stored in warehouses strategically placed throughout to minimize shipping costs to stores.,Operations,Heineken was limited to grabbing smaller brewers but in 2003,it acquired BBAG for$2.1billion dollars making it the biggest beer maker in sever countries across Eastern Europe.,Outbound logistics,Heineken has brewers throughout the world so that it can ship its finished products to local areas to minimize shipping costs.,Marketing and sales,Heineken is the 5th most recognized brand of beer in the world.By acquiring smaller brewers in the world they spread their label even more.,Service,Heineken has recently ventured out in the fields of nonalcoholic malts and fruit flavored drinks as an avenue into other customer areas.,ValueChain Analysis,(SecondaryActivities),General Administration,Heineken was the leading premium brand of beer for decades.Was the best selling imported beer in the US until Corona took over.So,at the same time Heineken pushed on other brands that would reduce is reliance on it core brand.Introducing Amstel Light,which has become the leading imported light beer in the US.,Human Resource Management,:,Heineken created management positions that be responsible for five different operating regions and nine different functional areas.The new stricture encouraged more risk taking and boosted the level of energy within the firm.,Technology Development,:,Heineken uses their technology to keep detailed documents of shipping,in their warehouses to make beer more efficiently and for shipping purposes.,Porters 5Forces ofcompetition,Industry competitors,+,Rivalry among existing firms,Suppliers,+/-,Substitutes,+,Buyers,+,New entry,-,Threats of substitutes,Threats of new entry,verylittle technical composition of beers,Growing appreciationforwine,$250million neededto build 4million barrelbrewery,Entryis riskysincenotmanyalternative uses forbreweries,No new entrantin beer industry hascracked the top 3 sellers since WWII.,Porters 5Forces ofcom
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