Heineken Case Study

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To stay relevant in the market, Heineken must continue to reach new markets and win over more consumers. As the domestic and international markets are changing, it is important for Heineken to adapt to the pressures of their competitors. Heineken is a natural low calorie beer which is important to today’s consumers, as health consciousness continues to explode. Another way Heineken can adapt to the pressures of the market is to increase the size of their brewery. According to their website, Heineken recognizes that by increasing the size of their breweries, they would be able to increase their capacity of production. By adapting to this pressure to expand, Heineken will increase their potential expansion opportunities and will allow them to stay competitive and relevant in their market.

The structure and initiatives of Heineken’s management team have helped to drive its growth to push market operations into countries all over the world. Since Heineken’s expansion there has been changes in the levels of management and leadership involvement within the organization. The company has successfully been able to maintain a strong brand name, and a superior product along with high quality ingredients. The company evolved from their conservative family control into a corporation that is based on collective action, innovation and individual responsibility. The organizational structure of the company shifted and lead to new management roles that included the creation of five operating regions and nine functional areas. Due to organizational changes, strategic decisions had to be incorporated, such as launching mergers and acquisitions to assist with penetrating local markets and taking advantage of established distribution channels already in place and acquiring those businesses. That being considered, Heineken has streamlined their management process to have clearly defined roles and responsibilities in place which has allowed them a faster decision making process. By initializing these streamlined processes, Heineken has helped to create for themselves a competitive advantage to take the lead of new opportunities faster than their competition.

Heineken is in a solid, dominant place in the international beer market. Under the leadership of their first non-Dutch CEO, Heineken has streamlined the management team, creating a slimmer, more accountable team that is pushing the limits and going beyond their typically less-risky attitude to make acquisitions that enable them to remain competitive. In addition to this drive, Heineken continues to acquire other brands targeted at specific nationalities and particular demographics, in order to increase its market share, and to decrease its heavy reliance on its flagship brand, the core of its business, Heineken. By maintaining its Multidomestic Strategy, Heineken will continue to be successful, and expand its ever-increasing reach even further.

Works Cited

Heineken. (n.d.). Retrieved March 05, 2016, from http://www.thebeerstore.ca/beers/heineken-nv

The Heineken Company. (2015). Retrieved March 05, 2016, from

http://www.theheinekencompany.com/about-us

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