Global Forces and the European Brewing Industry
Penthouse Heinlein seeks to expose not Just its own brand, but the local brands swell, it may be a daunting task because there is a lack of much innovation, especially that it is family controlled with no allowance for outside and new governance. But the brand itself is strong, so it will maintain and/or grow its position. Grossly It is a medium-sized company that has set a niche with products that are new and innovative, and their packaging is striking and different, but they may find it difficult to maintain this position in the market because of the trial and error expense they have created for themselves. N.B. Has the benefit of being the biggest brewer in most countries and continents, so it can afford to test new markets. But with the competitive environment it dwells in, the expense may go well beyond what they can manage, if they fail to market and run their product, brand cooperation. It will be difficult to achieve that because of its size. Scottish & Newcastle Has invested most of its power in an eventual dying market, Europe. The decreasing beer consumption will negate its resources unless it expands it reach overseas to expose its brands.
Luckily it is successful and with the European focus it has well attained, it has stability in its position in the market. There also need for them to diversify, instead of having beer on the market. QUESTION 2 (it) Strengths Strong overseas strategy to use locally acquired companies to introduce Heinlein to new markets. The transfer of expertise and technology to local, companies which help economies of scale for both Heinlein and local beers. It is family controlled to help stability and independence for international growth.
Weaknesses Its biggest brands are Heinlein and Master. For a big company, it does not diversify very much. It needs to create more brands to help maximize profits in different areas. It is family controlled, which means there is no allowance for 'new blood' and innovation. Grossly The company is innovative and it has a strong brand, which people rely on, e. G. Its flavored beers and striking green bottles. It has new drinks on the markets and works on new ideas plus, has a trial brewery for testing the market. It Exports many of its drinks which allow more customers.
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Weaknesses innovation for drinks and cost of production. The new brewery will potentially cost it with failures and trial drinks. Ellen Is a very big company and the merger allowed new ideas and more brands on the market. Wants to transform itself from biggest to best brewer, which means it values consistency and growth. Wants to coordinate all functions internationally. Weaknesses Too many acquisitions mean the cost maintenance is high. The ability to work as one unit for a big company is a difficult task to accomplish.
Consistency and synergy may be difficult across continents and countries. Scottish & Newcastle Focusing on Europe as a strategy helps them analyses effectively how to strategies and, helps unite all acquisitions and run them as one unit. The investments in Baltic Beverages helped them expose their brand to many countries. Closing down inefficient breweries cut down unnecessary costs. Weaknesses Simply focusing on one continent will not expose the products to new markets. Heavily investing in one sector, like the Baltic beverages, has potential consequence for failure cost.
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