2. Heineken McGraw-Hill/Irwin Strategic Management, 3/e
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3. Heineken
What strategy does Heineken follow in the beer market?

4. Heineken What is the structure of the global beer industry?
What recent changes have impacted the structure?

5. Heineken
What moves did Anthony Ruys make upon taking over the helm of the firm in 2002?

6. Heineken
What challenges does Ruys face?

7. Q1. Globalization challenges
Global strategy with its core brands – standardized products with strong central coordination; Heineken and Amstel are global brands
Moving toward a multidomestic strategy through acquisition of small breweries
Gives Heineken brands that are known within their domestic or regional markets
Most of these brands primarily geared toward local taste preferences and have not achieved much of a global presence

8. Q2. Industry Structure POTENTIAL ENTRANTS INDUSTRY COMPETITORS
High – Top four brewers (in 2004) accounted for only a third of the global market; number of local brewers operate
POTENTIAL ENTRANTS
INDUSTRY COMPETITORS
SUPPLIERS
BUYERS
High – abundant choices; brand appeal difficult to maintain; brand image important
High – large brewers expanding globally through acquisitions; U.S. beer consumption down since 2000
SUBSTITUTES
High – growing appreciation of wine
High – many alternatives for desserts/snacks (cake, pie, fruit, candy)

9. Q3. Ruy’s Moves Marketing Acquisitions
U.S. marketing expenses increased to $51 million vs. $35 million for Corona
To appeal to younger customers, tie-in with movies such as Austin Powers and The Matrix
Possibility of launching Heineken Premium Light to tap into the growing light beer market
Acquisitions
Acquisition of small brewers – Italy’s Moretti, Spain’s Cruzcampo, etc.
Major acquisition ($2.1 billion) of BBAG in Austria

10. Q4. Ruy’s Challenges Global Competition
Both Interbrew and SAB Miller became larger through major acquisitions
Lost 65 year old leadership in U.S. market
Ownership Issues
Still a family owned firm with daughter Charlene de Carvalho in charge
Need to respect age old tradition and not attempt major changes