1

Global forces in the Western European brewing industry

2

PESTEL is one of the key drivers analyzing board macro-environment of an organization

Politicalactions against over-consumptionrestrictions by government (prohibition, taxes..)

Economical cost reductionrise of off-trade because of sales/discounts in supermarketsrise prices of packagingeconomy crisis

Socialhealth and fitnesscustomers drink more wine then beforedemand for flavered beers

Technologyinnovation in beer production, new brands, flavorsincrease in efficiencycentralization of production and administration

Environmentalacquisition and mergerslower pollution, green companies

Legalrestrictions in advertisingage restrictionsdrink driving

3

5-force analysishelps identify the attractiveness of an industry in terms of five competitive forces

Threat of entrylow threatcapital intensiveloyal customers

Threat of substitutes  wine and licker, soft drinks

Power of buyerloyal customersswitch from on-trade to off-tradeswitch to substitute

Power of supplierspackaging suppliersrow materialsenergy suppliers

Competitive rivalrylow product differentiationacquisitions and strategic alliancesbig competitive rivalry

4

Strengths, Weaknesses & Recommendations

InBev

long traditionbiggest

clear strategy

not flexible

don't change strategystay innovative

Greene King

owner of famous brands

centralized productionoperating own pubs

shift from on-trade to off-trade

wide portfolio

focus on off-tradedon't expand

portfolio/new markets

Tsingtao

low cost of workfocus on export

when you think beer you don't think China

relatively new

marketing, promotioninnovation

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