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Date Submitted: 04/01/2016 08:58 AM
Appendix
A Case Study of Location, Distribution, and Capacity Expansion
Decisions at Anadolu Efes
Editor's Note: The case in this appendix cannot be distributed to students. This case is
currently under review by INFORMS Cases and Teaching Materials Initiative for distribution.
Contact Tom Grossman(tagrossman@usfca.edu) to find out the status of this case for in-class
use.
1. Introduction
Anadolu Efes has dominated the Turkish beer market in the last two decades as a result of careful
planning and successful strategies in distribution, pricing and marketing. Consequently, Efes has become
synonymous with beer in Turkey andhas reached an impressive 78% market share in 2000 (Exhibit 1).
The company has also extended its business line by buying the right to bottle Coca-Cola inTurkey in 1998,
and has been transforming into a multinational identity by building up international brewing operations
mostly in Eastern Europe, Russia and Central Asia. The two main challenges faced by the company in the
new millennium are to succeed in its business diversification efforts and to maintain its market position in
its core Turkish brewing business.
Emre Yaman, who was hired as the Chief Executive Officer of Efes nearly one year ago, has a couple of
major issues in mind as he shapes the business plan of the company for the years to come. In terms of
domestic operations, an immediate issue is that the anticipated increase in beer demand will surpass Efes'
total production capacity in a couple of years. A capacity expansion plan has to be prepared carefully to
address this problem. Such a plan will also prove useful to deter any foreign entries to the attractive
Turkish beer market. In fact, increasing competition is the other major issue in Emre Yaman's agenda. He
has already seen the first signs of pressure when Efes' main competitor Turk Tuborg was acquired by the
Danish Carlsberg Breweries in September 2001 and subsequently launched the “Carlsberg”...