Grolsch company case study

Grolsch company case study

The CAGE framework assesses cultural, administrative, geographic and economic differences between the host country and a foreign market. This framework is a useful starting point for assessing potential target countries. In several of their markets Grolsch was already on its third or fourth distributor in the span of 15 years. Introduction This case shows how global forces have impact on European brewing industry and how these companies are trying to overcome the obstacles. SABMiller now faces an important decision. The Asian financial crisis, which had ripple effects in Eastern Europe, caused Grolsch to adapt its strategy and pull-back from markets. The initial conclusion, detailed below, is that Grolsch should expand the MABA framework while also leveraging and recognizing the value of SABMillers distribution network. By , This allows for a consistent strategy and image in those markets as well as opens the opportunity for selling in developing markets where SABMiller has a strong presence. Their marketing campaigns would vary significantly from market-to-market. Grolsch should supplement their MABA framework by using aspects from Porters Diamond Model, which highlights other strategic elements regarding foreign expansion. However, Grolsch needs to continue carefully evaluating the components of the MABA framework for each country to ensure an entrance is not made without fully understanding if differences in the target country will adversely affect the sales of Grolsch beer. However, they must assess whether or not the MABA framework is still useful, what type of international strategy they should pursue i. With the industry consolidation, there is a shift from multi-domestic to global as competitive reactions are handled globally due to the presence of large brands competing across multiple countries.

DuringDutch brewer Heineken complained of an 11 per cent rise in packaging costs. MABA alone can oversimplify complex relationships that exist between countries and some results can be counterintuitive. By However, they must assess whether or not the MABA framework is still useful, what type of international strategy they should pursue i.

The company invested In the UK market and established a licensing partnership with Molson Coors in These frameworks are useful in providing a basis for analyzing Grolschs global strategy.

Nobody in operations has any idea why. Current strategy The beer industry has been in the existence for as long as the barley have been harvested and used for the making of the beer. Insights are referenced in this paper, but details contained within each framework are primarily discussed in the exhibits so as to focus on core questions related to Grolschs global strategy.

The CAGE framework assesses cultural, administrative, geographic and economic differences between the host country and a foreign market. During , Dutch brewer Heineken complained of an 11 per cent rise in packaging costs. At the same time its rivalry Heineken was moving impressive in an international market. A PEST analysis helps in understanding the macro-environmental factors such as market trends, market potential, business positions, and direction for future operations see exhibit 2. The company is evaluating its global strategy in light of the acquisition and determining how to position and sell its beer going forward. But, it will also depend on their ability to adapt the brand image and marketing approach based on the cultural differences of the foreign markets they enter. I will …show more content… Larger markets also mean the potential for greater profit, so companies go global to seek new business opportunities and even to expand the range of goods and services that they offer. However, this deal was ended after the acquisition of by SABMiller. The company invested In the UK market and established a licensing partnership with Molson Coors in By ,

Joe Wilson, VP operations, has experienced an increasing problem with rejected product found during the manufacturing operation. Finally, GDP per capita aligns with economic differences.

grolsch growing globally case study solution

Grolsch has two main brand families: Grolsch premium Lager and Amsterdam. Transportation cost is a proxy for geographic distance, though ideally this metric should be rated directly on the costs rather than reducing its accuracy to a simple scale.

This is a mixed measure on the positive side, it assesses what tariffs and hurdles might need to be overcome, but given the diverse government relationships throughout the world, this might be too simple an assessment. The right international strategy for Grolsch going forward is a transnational strategy, though there are strong elements pushing this toward a global strategy.

However, they must assess whether or not the MABA framework is still useful, what type of international strategy they should pursue i. Their marketing campaigns would vary significantly from market-to-market. Nobody in operations has any idea why. This is a form of a CAGE framework. The prospects for Grolschs continued globalization and increased growth internationally look positive following this merger. For example, China is listed as high market attractiveness Exhibit 9 in the case , but in solely assessing the individual MABA scores, one might expect China to perform poorly on market attractiveness, given the differences between China and the Netherlands in distance, culture, transportation costs, etc. EU relation matches with administrative distance and speaks to the trade relationships between various countries and the Netherlands. The initial conclusion, detailed below, is that Grolsch should expand the MABA framework while also leveraging and recognizing the value of SABMillers distribution network.
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Grolsch case study