International Business

Foreign market analysis is the act of assessing or evaluating new, international markets as prospective environments to do trade or business. Also, a foreign market is any market besides the one based in a person’s home country. Firms pursuing to enter into a foreign market normally experience some fundamental issues when trying to analyse such market; Heineken is one such example.

Heineken was found by Gerald Heineken in Amsterdam in 1864. It is also the world’s third largest beer producer, after Antheuser-Busch and SABMiller this success came within a few years of being established mainly by evaluating cost, benefits and risk effectively this was evident in its quality products and correctly analysing the market segments and also market positioning in Europe, France, Far East and USA by an associate by the name of Van Munching and Company.

Assessing Alternative Foreign Markets- A firm must consider a variety of factors, including market potential, levels of completion, the legal and political environment and sociocultral influences when assessing alternative foreign market. When Heineken decided to enter into the United States of America’s market, his son Henri was sent directly into the country to gather first had information on potential of the market. Heineken, due to intensive competitions in its EU’s market invested heavily in a new internet base technology which resulted in a market expansion for the company in the 1980s. Heineken has also invested significantly in the Muslims’ market by producing non alcoholic beer under the Fayrouz label which has brought 1.3 billion Muslims customers in the world to enjoy the Heineken beer.

Choosing a mode of entry- The Dunning eclectic theory considers three factors: ownership advantages, location advantages and internalization advantages.

Heineken, Joint Venture

2. Discuss the advantages and disadvantages of Heineken’s exporting.

Almost immediately after the foundation of Heineken in 1864, it started to...