1 Industry Definition2
For the purpose of this business report the global brewing industry is defined as
the group of those companies, that are producing beer and operate on a national or
a global scale. For diversified companies the report focuses on the beer brewing
activities of those respective firms.
2 The Industry's Current Position3
As already predicted by Stewart Gilliland4 of Whitbread PLC as well as many
other industry experts, during the last two years crucial developments have taken
place. First, in terms of industry concentration and global expansion of dominant
players. Second in terms of consumer taste and behaviour which again had an
impact on company's strategies and product portfolios.
2.1 The Markets
The industry's main markets are Western Europe, Eastern Europe, America
including North- and South America, Africa and Asia including China and India.
In each of those regions the industry is in a completely different stage of the
industry lifecycle.5 Moreover population and per capita consumption indicate
growth opportunities and hence potential attractiveness of the respective markets.6
(See: Appendix A and B) [...]
2 "If industries are defined by competitive relationships among firms (…)" Grant, Robert M.
(1998), Contemporary Strategic Analysis, p. 85
3 For the purpose of this report the "position of an industry" is defined as the stage of the industry
within the industry life cycle.
4 "The beer market will change more in the next 5 years than it has in the last 15.", Stewart
Gilliland, Sales & Marketing Director of Whitbread PLC (today part of the Interbrew group),
quoted by The Grocer, 6ht May 2000, in Key Note on "Premium Lagers, Beers & Ciders", Market
Report Plus 2000
5 Heineken, Annual Report 2001, Report of the Executive Board, p. 15
6 Saul Klein (2000), "South African Breweries: Achieving Growth in the Global Beer Market",
ECCH-Collection, p. 6
Table of Contents
1 Industry Definition
2 The Industry's Current Position
2.1 The Markets
2.2 The Players
3 The Industry Structure
3.1 The Macro-environmental Influence
3.2 The Micro-environmental Influence
4 Globalisation Potential of the Beer Industry
4.1 Relevant Globalisation Drivers
4.2 Outlook on Future Industry Development
Research Objectives and Themes
This report investigates the strategic landscape of the global brewing industry, focusing on how consolidation, market shifts, and environmental factors drive industry evolution and the potential for global strategies.
- Analysis of the current industry structure and competitive landscape.
- Evaluation of macro-environmental influences via PEST analysis.
- Assessment of micro-environmental competitive forces using Porter's framework.
- Examination of globalisation drivers and their impact on market entry and expansion.
- Review of future industry development trends and investment strategies.
Excerpt from the Book
2 The Industry's Current Position
As already predicted by Stewart Gilliland of Whitbread PLC as well as many other industry experts, during the last two years crucial developments have taken place. First, in terms of industry concentration and global expansion of dominant players. Second in terms of consumer taste and behaviour which again had an impact on company's strategies and product portfolios.
The industry's main markets are Western Europe, Eastern Europe, America including North- and South America, Africa and Asia including China and India. In each of those regions the industry is in a completely different stage of the industry lifecycle. Moreover population and per capita consumption indicate growth opportunities and hence potential attractiveness of the respective markets.
Summary of Chapters
1 Industry Definition: Defines the scope of the global brewing industry and the specific focus on beer production activities.
2 The Industry's Current Position: Provides an overview of market trends, industry concentration, and the geographic distribution of key industry participants.
3 The Industry Structure: Analyzes the macro-environmental PEST factors and micro-environmental competitive forces shaping the sector.
4 Globalisation Potential of the Beer Industry: Investigates the drivers of globalisation and provides an outlook on the future strategic direction of major breweries.
Keywords
Global Brewing Industry, Strategic Management, Industry Concentration, Market Expansion, PEST Analysis, Porter's Five Forces, Globalisation Drivers, Consumer Preferences, Economies of Scale, Emerging Markets, Brand Management, Competitive Advantage.
Frequently Asked Questions
What is the primary focus of this business report?
The report provides a strategic analysis of the global brewing industry, examining current competitive dynamics and the potential for future global integration.
What are the core thematic areas discussed in the report?
Key themes include the current market positioning of global brewers, the influence of macroeconomic factors, competitive forces within the micro-environment, and the drivers of globalisation.
What is the central research question or goal?
The objective is to explain and evaluate the present structure of the beer industry and determine the extent to which economies of scale and globalisation influence future market development.
Which analytical frameworks are applied in the research?
The report utilizes PEST analysis for macro-environmental factors and Michael E. Porter’s framework to assess the industry’s micro-environmental attractiveness.
What is covered in the main body of the work?
The main body covers market definitions, an assessment of regional growth versus mature markets, the impact of mergers and acquisitions, and an analysis of globalisation drivers.
What key terms characterize the industry according to this report?
The industry is characterized by consolidation, changing consumer tastes, the necessity for economies of scale, and strategic expansion into emerging markets.
How do emerging markets influence the global strategy of major breweries?
Emerging markets provide growth opportunities for multinational breweries to achieve economies of scale and gain a cost advantage, despite challenges in local legal and economic infrastructures.
Why is the "global brand" concept considered difficult to achieve in the beer industry?
It is deemed difficult due to the high significance of local drinking preferences, the cost of global brand management, and the current focus of international trade barriers on regional rather than global markets.
- Quote paper
- Johannes Hartmann (Author), 2003, The Global Brewing Industry, Munich, GRIN Verlag, https://www.grin.com/document/19513
