Heineken Beer report. Opportunities and threat analysis in Heineken Company

Opportunities and Threat Analysis in Heineken Company
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Opportunities and threat analysis in Heineken Company
Beer is among the oldest alcoholic drinks consumed globally (Vashishth & Tripathi 2016). The industry has a stable market demand; therefore, careful analysis of potential threats and opportunities is crucial. The beer industry, particularly Heineken, is a global brand thus requires continuous analysis of the market trend to make necessary adjustments. The developing trends broadly involve both beer manufacturers and consumers whose tastes and preferences rapidly change. Developing trends include the introduction of wet hop beers made up of freshly picked hops instead of the traditionally dried ones, thus having a grassier taste. The increase in consumption of alcohol-free beer is setting a new trend with increasing consumer demand. Beer franchising entails the use of the latest sophisticated AI systems to monitor recipes and ingredients. However, the production process primarily involves human brewmasters.
The external analysis of Heineken Company involves an analysis of factors outside the business that affect operations. Heineken is a global company; thus, growth in the world economy translates to increased beer makers' profits. An increase in the worldwide population indicates an increase in demand for beer, thus new opportunities. Consolidation in the beer industry facilitates successful merging and acquisition (Vigna et al. 2018). Recent company reports suggest that the company often scan the market for potential targets. The purchase offers an excellent opportunity for growth in Heineken through an increasing market share in vulnerable regions. Although Heineken enjoys vast geographical reach, low market share in crucial markets, specifically in the United States, derails its growth because of the increasing competition from Carlsberg (Vigna et al. 2018) Predicting the effects of currency rate fluctuations is difficult; thus, weaker currency markets translate to negative results.
Examining the environment in which the company operates is crucial in understanding the industry players and factors that influence the ...