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Its joint venture with a leading Japanese brewer, Kirin, gives it a strong presence in that key market. Heineken aggressively expanded in European market in 1980 considering the EUs competition of its common market and invested heavily in new internet based technology. Heineken has made one recent important strategic decision to change the Van Munching & company to Heineken USA which has helped cut costs and added additional profit. Heineken has made another significant investment for Muslim customers by producing non alcoholic beer under the Fayrouz label which has brought 1.3 billion Muslims customers in the world to enjoy the Heineken Beer.
Heineken setup breweries in over 50 countries including Canada, France, New Guinea, Australia and Brazil. It got into Japanese market through joint venture with a leading Japanese brewer Kirin. Heineken aggressively expanded its market in Europe in 1980s to establish itself with overwhelming market dominance. Subsequently, it bought breweries in Greece, Ireland, Italy and Spain and thereby expanded its product lines and facilities of distribution throughout Europe But interestingly Heineken did not setup any brewery in USA, taking lessons from Miller, a distributor of Lowenbrau in US market, importing from Germany In 2002 Heineken bought Egypts brewery, Al Ahram Beverage Co. Thereafter, in 2003 onward it started exporting nonalcoholic beer in Muslim World, a popular product of Al Ahram and captured the large untapped market.
Another key issue Heineken might eventually face is that the original flavor of the brew might be mixed with a flavor from the locality, thus, losing its original, imported taste. It's not about perception. That can really happen because the locality might greatly influence the taste and flavor of the locally produced beer.
Heineken is that it must be shrewd enough to choose the business partner that has the lowest demand. The licensee must agree on a high value of fees the parent company would charge
on every bottle of beer it could sell
Answer to Q No-4
Heineken's Greenfield Investments
In 1931 the very first foreign Heineken brewery was opened near the Indonesian city of Surabaya. Two years later Heineken set up a brewery in Singapore together with soft drinks producer Fraser & Neave
CONCLUSION
Heineken was the unique company in the history of the global business that just after the establishment of the company, the firm started exporting in the foreign market successfully. The Heineken from its inception, became very profitable firm except a few depression in the US market, the firm grew in a very aggressive manner in the global market and became the 3rd largest beer company in the world. The key success factor of the company was, the perfect Vision and strategic objectives setting and maintaining value chain in all the company activities to maintain its best cost Brand image.
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