Heineken's Important Issues and Strong Performance Deliverance

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Heineken’s Case Analysis
Heineken, a Dutch brewer, is one of the leading beer companies in the world. The firm has continually been expanding and penetrating in different parts of the world. Heineken’s motivation to enter the global market was triggered by the SAB Miller and Anheuser-Busch InBev merger, which made the combined enterprise to have a 30% of international beer sales. The primary strategy that Heineken has been using to enter the global market is the acquisition of small local beer companies. For example, in 2013, Heineken acquired the owner of Bintang and Tiger, which made the firm the third-largest brewer in the Asian Pacific region (“Heineken” 102). The beer company stayed for a few years before acquiring FEMSA Cervesa, a Mexican brewer and producer of Tecate, Sol, and Dos Equis beers, which made it gain a competitive advantage in Latin America. Heineken’s acquisition of small beer firms in different countries and its conservative organizational culture enabled it to have a strong performance in the past.
Heineken gained control of numerous markets worldwide through the acquisition of local brands. In 2008, it acquired Scottish & Newcastle, the producer of Kronenbourg 1664 and Newcastle Brown Ale, which enabled it to stabilize its operations in Belgium, the United Kingdom, Finland, Portugal, and Ireland. In particular, acquiring brewers across the world has enabled the Dutch beer company to develop and maintain a superb reputation and competitive advantage in the international retail beer sector, which is estimated to be worth about $460 billion (“Heineken”105). Although the family traditions were the primary hindrance toward Heineken’s failure to expand globally, it significantly helped the company to grow locally. Consequently, by the time the firm decided to enter the international market, it had acquired relevant resources.
The two primary issues confronting ...