Heineken in Russia

Type :

Case study

Pages :

9 pages

Format :

.doc

Published date :

01/13/2009

Category :

Business & market

Sub category :

Business strategy

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Summary :

Heineken's strategy for growth.
The challenges facing Heineken in meeting its objectives.
1. The overall economic situation in the different countries.
2. The Americas - the most profitable regions for Heineken.
3. The fast growing market of Asia
Heineken's strategies for Russia.
1. Not being historically present on the Russian market as an advantage.
2. Acquisition of Bravo International Inc.
3. Producing and selling local brands.
Challenges/Opportunities facing Heineken in Russia.
1. The huge size of this market.
2. The company will have to fight the competition.
3. The Russian market might not be growing as fast as expected in the coming years.
The Environmental factors that face Heineken.
1. Political factors.
2. Economic factors.
3. Socio-cultural factors.
4. Technological factors.
5. Environmental factors.
6. Legal factors.
Suggestions for Heineken to move forward.
Bibliography.

Abstract

heineken is the first European Brewer and one of the first brewers in the world. Also, to give a better idea of the situation of the company, let's state some figures. In 2005, net profit was 761 million €, with sales above 10 billion € and a total beer volume of almost 120 million hectoliters. All this represents an annual growth of nearly 20% in net profit, more than 7% in revenue, and more than 5% in sales volume (hectoliters). So, we may wonder where this growth comes from, what is heineken's strategy to achieve such a growth and sustain it. In their 2005 annual report, they state: "We are committed to growth and have embraced innovation as a key component of our strategy. We work to continually anticipate and meet the changing needs of consumers. Our innovations are in the areas of production, marketing, communication, packaging, and, in particular, draught beer systems, where we are an acknowledged leader." So, it could seem that there strategy is focused on innovation, but as we will see, not only. Another part of the strategy seems to focus on an active participation to the consolidation in the beer market, so as to be able to grow and strengthen a good position in mature and profitable markets.