Heineken: Business Essentials and Competitive Analysis Report

This report provides an analysis of Heineken, a leading international food and beverage company, focusing primarily on its beer business. It examines the key issues faced by the company, including government regulations and societal perceptions related to alcohol consumption. The report delves into the competitive landscape, highlighting United Breweries Group (UB) as a major competitor. A SWOT analysis is conducted to assess the company's strengths, weaknesses, opportunities, and threats. The report further explores the supply chain management, brand values, and images of Heineken. Porter's Five Forces model is applied to evaluate the competitive position of the industry, analyzing the bargaining power of buyers and suppliers, threats of substitutes and new entrants, and industry rivalry. The conclusion summarizes Heineken's market share, competitive strategies, and pricing policies. The report provides a comprehensive overview of Heineken's business operations and its position in the global market.

BUSINESS ESSENTIALS
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. The competitor’s policy
that are used by organisation.
Company has used Potters five force
model to know about the competitor’s
position at the market place.
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 given 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
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.
ABSTRACT
Threats of substitutes: Substitutes are
products which can be used in place of
one another. Product differentiation
strategy 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.
Industry Rivalry: It is
affected by large sizes of industries at
the market place and barriers to exit are
low at market place.
Heineken covers largest market shares
in economy and thus it occupies third
highest market share in the economy
and also the large brewer and
distributors in Europe.
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.
The key issues that are faced by
company are:
Government impose high
tax regulations on beer
industry.
It creates a negative
perception in society as
consumption of alcohol is
restricted by society
members
. From the above report it can be
concluded that Heineken are largest
beer producing company in the
world and has the largest market
share in the economy. The
competitor of the company is United
Breweries Group (UB) which also
occupies largest shares at the market
place. The different pricing policy
that are adopted by organisations.
customers.
BACKGROUND
CONCLUSION