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