Grolsch's Strategies to Maintain Its Position in International Market

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Date: Characteristics of Grolsch Grolsch is an outstanding corporate based in the Netherlands with a huge market share in Northern Europe. It traced its roots as a brewery in Groenlo, Dutch, when Willem Neerfeldt acquired it. It was later managed by Theo J. De Groen, who is 1897, introduced the grand ceramic swing-top bottle. The bottle came as easy to open and could preserve the beer for later consumption. The company has remained relevant in the beer industry for the following peculiar characteristics:

Since it has had high stakes in the Netherlands, the government appreciated the company's prestigious title – Royal in 1995. This later earned it the name Royal Grolsch N.V. Grolsch has also been integrated as a two-tier company within the Dutch laws. It had two branches on which it has exclusive ownership. These included; Grolsch Bierbrouwerij Nederland, responsible for marketing and sales in the Netherlands, and Grolsch International, which took charge of worldwide sales.

Before SABMiller assumed ownership, Grolsch had strengthened faster growth than its main markets as it obtained a return on investment beyond its average cost of capital. This was consistently raising dividends and earnings per unit of capital. It also considered its non-monetary associates, mainly the surrounding community and employees. Grolsch had an employee welfare index varying from an average payroll value of €60,000 to the beer, which was classically supplied weekly to employee homes.

Grolsch furthermore availed a wide variety of products that were categorized into two families of brands, Amsterdam and Grolsch. The company's plan of the action revolved around the Grolsch brand. Its pioneer product, Grolsch premium lager, was equivalent to 90% of its local volume. The plans of action showcased in the Grolsch characteristics satisfy as core competencies. This can be attributed to the continued existence and relevance of the company within the beer industry globally. Furthermore, it has succeeded in realizing profits which have ensured equitable remuneration of its employees and conducting its corporate social responsibility.

Internationalization of Grolsch

Internationalization is the process of creating products to fulfill the needs of consumers on a global scale. It can also involve adjusting them to sustain the varied needs of users worldwide. Formerly, Grolsch had grown interested in developed markets, especially Canada, Australia, France, the U.S., New Zealand, and the U.K., with a view of moving up to the top 10 in the global beer brand rankings. At the moment, it was the 21st biggest brand in the global market, as depicted by the International volume.

Grolsch ventured into internationalization since the International Volume had considered moderately more than half of the total volume, which presented possibilities for growth. It was also prompted by inactiveness and declined the flow of products within the Netherlands and Heineken, its greatest rival, when advancing to the comparative limelight. It was a good strategy since Grolsch found a loophole to compete globally with bigger brands like Heineken. This rather predisposed it to global markets and explore the areas not ventured by other competitors. It also assisted the company in disposing of its products when the local market had reduced their consumption.

Lessons on Countries to Compete

Grolsch's history presents Latin America and Africa as the markets to initiate your beer business since other beer products have not infiltrated most markets. They require more product promotion to reach out to potential customers of the new beer products. Moreover, the involvement of Grolsch in other markets like Australia, the U.K., New Zealand, Canada, France, and the U.S. portrays them as the most evolved markets in the beer industry. In the countries where Grolsch realized success from selling its products, the entry criteria into such markets mostly involved identifying a beer company within the market, which can contend with merging and then boost the sales from within. This was evident in markets like Russia and Australia.

Internationalization in Different Countries

The U.K., U.S, and France were the largest markets for Grolsch, respectively. Internationalization in different countries might have been fu...