heineken ppt

StrategicAnalysis

WhatPremium

beerandprice

Diversifiedportfolio

Brandimage

WhoYoungadults

Status

HowGlobal

presence:170countries

Emphasisonreputation

CompanyOverview

InternationalStrategy

ComparativeAnalysis

FutureChallenges

StrategicAnalysis

• Heinekenfamilyenteredthebeerbusiness1864

• MovingintoUSandAsianmarkets1921‐1931

• Beercantravel–focusonbrand&marketing1949

• ExpansiontoSouthAmericaandAfrica1961

• HeinekenmergedwithbiggestcompetitorAmstel1968

• CooperationwithCoca‐ColainBrazil• EnteringtheJapanesemarketunderalicense1983

• AcquisitionofScottish&Newcastle2008

• MergerwithFEMSA2010

CompanyOverview

InternationalStrategy

ComparativeAnalysis

FutureChallenges

StrategicAnalysis

CompanyOverview

InternationalStrategy

ComparativeAnalysis

FutureChallenges

StrategicAnalysis

CompanyOverview

InternationalStrategy

ComparativeAnalysis

FutureChallenges

0

100

200

300

Heineken Inbev SabMiller

Worldwide Volume (millions of hectoliters)

Heineken Inbev SabMiller

13000

14000

15000

16000

17000

Heineken Inbev SabMiller

Worldwide Revenue (€ million)

Heineken Inbev SabMiller

+19%125,000

thousandhectolitres

Volume+27%4,318

mil.€

Revenue

2005 2008

2008 2008

CompanyOverview

InternationalStrategy

ComparativeAnalysis

FutureChallenges

StrategicAnalysis

Inbo

und

logistic

Ope

ratio

ns

Outbo

und

logistic

Procurement

Marke

ting&

Sales

Service

TechnologicalDevelopment

FirmInfrastructure

HumanResourceManagement

Margin

CompanyOverview

InternationalStrategy

ComparativeAnalysis

FutureChallenges

StrategicAnalysis

CompanyOverview

InternationalStrategy

ComparativeAnalysis

FutureChallenges

StrategicAnalysis

Advertisement Portfoliomix/

diversification

Brandrecognition

Innovation

Synergies

Expansion

Economiesofscale

CompanyOverview

InternationalStrategy

ComparativeAnalysis

FutureChallenges

StrategicAnalysis

CompetitiveRivalry

ThreatOfEntry

PowerOfBuyers

ThreatOfSubstitutes

PowerOfSuppliers

CompanyOverview

InternationalStrategy

ComparativeAnalysis

FutureChallenges

StrategicAnalysis

CR

TE

PB

TS

PS

• Powerfulandexperiencedincumbents• Marketsaturationandlowdifferentiation• Investmentneedsandhighentrybarriers• Threatfromotherbeveragecompanies

ThreatOfEntry

BEERINDUSTRYPORTERFIVEFORCES

CompanyOverview

InternationalStrategy

ComparativeAnalysis

FutureChallenges

StrategicAnalysis

CR

TE

PB

TS

PS

• Alcoholicandnon‐alcoholicbeverage• Ambiguousprice/performance–tastedependent• Highloyaltytobeer:mostdrankalcoholicbeverage• Healthconsciousnessgrowthtrend

ThreatOfSubstitutes

BEERINDUSTRYPORTERFIVEFORCES

CompanyOverview

InternationalStrategy

ComparativeAnalysis

FutureChallenges

StrategicAnalysis

CR

TE

PB

TS

PS

• Localscarcityandshortagesigns• Easyaccesstosupplies(e.g.maltingbarley)• Smallandfragmentedsupplierbreakthrough• Ordersfrommajorbrewerscrucialforsuppliers

PowerOfSuppliers

BEERINDUSTRYPORTERFIVEFORCES

CompanyOverview

InternationalStrategy

ComparativeAnalysis

FutureChallenges

StrategicAnalysis

CR

TE

PB

TS

PS

• Retailers:• Fragmentedanddiversified• Severalswitchingoptionsandlittledifferentiation

• Consumers:• Pricesensitiveandculturedependent• Noswitchingcosts• Fragmentedbutloyalbuyers

PowerOfBuyersBEERINDUSTRYPORTERFIVEFORCES

CompanyOverview

InternationalStrategy

ComparativeAnalysis

FutureChallenges

StrategicAnalysis

CR

TE

PB

TS

PS

• Matureandsaturatedindustrywithstaticgrowth• Strongbrands,loyaltyeffectsandlowdifferentiation• Intenserivalryatthetop• Highexitbarriers

CompetitiveRivalry

BEERINDUSTRYPORTERFIVEFORCES

0

1

2

3

4

5CompetitiveRivalry

ThreatOfSubstitutes

PowerOfBuyersPowerOfSuppliers

ThreatOfEntry

BeerIndustry‐PorterFiveForcesAnalysis

CompanyOverview

InternationalStrategy

ComparativeAnalysis

FutureChallenges

StrategicAnalysis

CompanyOverview

InternationalStrategy

ComparativeAnalysis

FutureChallenges

StrategicAnalysis

KEYISSUES

HealthConsciousnessTrend

IncreasingRegulations(IEC)

ExpansionToEasternCultures

IncreasingConcentration

SegmentSaturationAndCannibalization

CompanyOverview

InternationalStrategy

ComparativeAnalysis

FutureChallenges

StrategicAnalysis

•  Largeportfolioincludingmajorbeveragebrands•  Uniqueinnovation‐productandconsumption•  Worldwidefamousbrandimage

Strengths

•  Inconsistentpositioning(premiumvs.mainstream)• Damagedreputationduetominorscandals• Higherexposuretorisk–acquisitionsandculturaldifferences

Weaknesses

CompanyOverview

InternationalStrategy

ComparativeAnalysis

FutureChallenges

StrategicAnalysis

• Backwardsintegrationtosupplygathering• Emergingeconomieswithgrowingpopulationsandincome• Highlydemandingconsumerslookingforspecifictaste

Opportunities

•  Increasinghealthconsciousnessconcernstowardsalcohol• Risingpopularityofotherbeverages• Highlyregulatedindustry

Threats

StrategicAnalysis

CompanyOverview

ComparativeAnalysis

FutureChallenges

InternationalStrategy

StrategicAnalysis

CompanyOverview

ComparativeAnalysis

FutureChallenges

InternationalStrategy

ForeignSalesOverTotalSales

WorldwideProductDivision Global

Matrix

Multi‐DomesticDivision

AreaDivision

ForeignProductDiversity

StrategicAnalysis

CompanyOverview

ComparativeAnalysis

FutureChallenges

InternationalStrategy

NeedForLocalAdaptation

NeedForGlobalIntegration

TransnationalGlobal

MultiDomestic

StrategicAnalysis

CompanyOverview

ComparativeAnalysis

FutureChallenges

InternationalStrategy

NeedForLocalAdaptation

NeedForGlobalIntegration

TransnationalGlobal

MultiDomestic

FirmStrategy,StructureandRivalry DemandConditions

RelatedandSupportingIndustries FactorConditions

Porter’sDiamond

StrategicAnalysis

CompanyOverview

FutureChallenges

InternationalStrategy

ComparativeAnalysis

StrategicAnalysis

CompanyOverview

FutureChallenges

InternationalStrategy

ComparativeAnalysis

Country PowerDistance Individualism Masculinity UncertaintyAvoidance

Netherlands 38 80 14 52

Portugal 63 27 31 104

StrategicAnalysis

CompanyOverview

InternationalStrategy

ComparativeAnalysis

FutureChallenges

StrategicAnalysis

CompanyOverview

InternationalStrategy

ComparativeAnalysis

FutureChallenges

StrategicAnalysis

CompanyOverview

InternationalStrategy

ComparativeAnalysis

FutureChallenges

StrategicAnalysis

CompanyOverview

InternationalStrategy

ComparativeAnalysis

FutureChallenges

StrategicAnalysis

CompanyOverview

InternationalStrategy

ComparativeAnalysis

FutureChallenges

FilipeCarvalhão|JoanaVaz|MariaTeresaCosta|MichaelBeerhorst|NunoLoureiro