Analysis Of Heineken

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Recommended: Analyze broad differentiation strategy

Heineken’s follows a differentiation business strategy and multi-domestic strategy. Heineken gains a competitive advantage by distinguishing their products by creating Premium Light beer line, portable draught beer system (DraughtKeg), and redesigning their bottles. Heineken Premium Light attracted customers without taking sales away from their other beer selection. The decision regarding the launch of their new product was to raise brand awareness in the U.S. market and react to changes in the growing global market. Major source of Heineken’s revenue comes from their subsidiaries. The mergers and acquisitions of the local beer brands in niche markets such as the recent five brewers in Nigeria have provided a gain in the local market share. Using a multi-domestic strategy, a major source of revenue results from their subsidiaries and they have had an increase in sales since 2006.
The raw materials needed to produce the beer are mainly supplied by farmers. Therefore, the bargaining power of these suppliers is high and can affect Heineken’s costs. The consumers in the beer industry ha...

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