global forces in the western european brewing industry
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Global forces in the Western European brewing industry
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PESTEL is one of the key drivers analyzing board macro-environment of an organization
Politicalactions against over-consumptionrestrictions by government (prohibition, taxes..)
Economical cost reductionrise of off-trade because of sales/discounts in supermarketsrise prices of packagingeconomy crisis
Socialhealth and fitnesscustomers drink more wine then beforedemand for flavered beers
Technologyinnovation in beer production, new brands, flavorsincrease in efficiencycentralization of production and administration
Environmentalacquisition and mergerslower pollution, green companies
Legalrestrictions in advertisingage restrictionsdrink driving
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5-force analysishelps identify the attractiveness of an industry in terms of five competitive forces
Threat of entrylow threatcapital intensiveloyal customers
Threat of substitutes wine and licker, soft drinks
Power of buyerloyal customersswitch from on-trade to off-tradeswitch to substitute
Power of supplierspackaging suppliersrow materialsenergy suppliers
Competitive rivalrylow product differentiationacquisitions and strategic alliancesbig competitive rivalry
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Strengths, Weaknesses & Recommendations
InBev
long traditionbiggest
clear strategy
not flexible
don't change strategystay innovative
Greene King
owner of famous brands
centralized productionoperating own pubs
shift from on-trade to off-trade
wide portfolio
focus on off-tradedon't expand
portfolio/new markets
Tsingtao
low cost of workfocus on export
when you think beer you don't think China
relatively new
marketing, promotioninnovation
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