Business Essentials: Heineken and Competitors

BUSINESSES
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................2
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business Essentials consist of physical items that are needed by organisations to sustain
health related issues and life of person. The necessary goods that are produced by business
operations include foods and beverages, water, heating fuels and materials that are used for
constructing buildings. This report contains the study about Heineken which is leading brand in
food and beverages and it specially deals in beers (Anderson 2011). The competitors policy that
are used by organisation. Company has used Potters five force model to know about the
competitors position at the market place. Threats that affect the operations of company. The
competitor of Heineken is United Breweries Group (UB) which is an Indian company and it had
its ownership under kingfisher beer brand. SWOT analysis is done to know about the capabilities
and weakness of organisation. The supply chain management system adopted by company,
Brand values and images.
TASK 1
Heineken is an international company which deals in food and beverages. It has its own
tag-line to attract customers like World most international brewer. The major competitor players
of beverages company are Tiger Beer, jillz, amstel and buckler. Five force model give by porter
evaluates the different factor that determines the competitive position of industries at the market
place.
Bargaining Power of Buyer: It indicates that there are large number of people who are
consuming the products manufactured by Heineken. Switching cost of buyer is low at the market
place who are consuming the products ( Sweeney 2011).
Bargaining Power of supplier: There is high competition in market who are selling the
products of Heineken. Power become strong when there is only one supplier in a particular
location and large number of buyer who will be consuming the products.
Threats of substitutes: Substitutes are products which can be used in place of one
another. Product differentiation startegy used by Heineken and also involves high cost of
switching to other substitutes.
Threats of new competitors: Large number of competitors affect the market
share in the economy. If the buyers are not loyal than they will switch otherwise the
product offered by competitor will not affect the market position of the product.
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