What is the structure of the global beer industry? This case deals with a firm that had
Question:
What is the structure of the global beer industry?
This case deals with a firm that had been a pioneer in establishing itself as a global competitor in the beer business, gaining recognition around the world based on its well-known green bottle. Heineken had to respond to a wave of massive consolidation in the beer market. Many beer brewers had been moving aggressively to establish themselves as global players by acquiring smaller regional and national players.
Jean-Francois van Boxmeer was appointed as Heineken’s first non-Dutch CEO in October 2005. Since his appointment, Heineken restructured itself to increase its ability to respond to the mega-acquisitions done by its formidable competitors such as Belgium’s InBev and South Africa/United Kingdom’s SAB Miller. Heineken entered into a joint venture deal with Denmark’s Carlsberg to acquire Scottish-based brewer Scottish & Newcastle, and most recently had acquired breweries in Nigeria, Ethiopia, and Mexico. This would help establish Heineken as the leading brewer in Europe, the second largest in Africa, and a supplier to the growing Hispanic population in the U.S. Heineken had needed to raise its stature in its various worldwide markets and respond to the changes that were occuring in the global beer industry. Were the current strategies effective?
Step by Step Answer:
Strategic Management Text and Cases
ISBN: 978-1259302923
8th edition
Authors: Gregory Dess, Tom Lumpkin, Alan Eisner, Gerry McNamara