Porter Five Forces Heineken

5 forces model – Heineken

Threats of subsitutes.

-very little technical composition of Beers.

-Growing appreciation for wine.

-While the brewing industry has enjoyed success over the last decade, there are still many threats to this industry. These threats come in all different forms. The following section will discuss two different threats facing the industry: government involvement and imports.

- The threat of substitute products is moderate in the industry. Some people believe that wine coolers will continue to steal market share form the beer industry, while others believe that wine coolers are just a fad that will die down. Pre-mixed drinks can also be considered a substitute. Bacardi breezers and Jack Daniel's country cocktails are a example of this. In a bar, a person has a choice among many different drinks. Malt beverages(ZIMA) can also be considered a threat.

Ondanks dat de vraag naar bier is gestegen in de laatste decenium, zijn er toch veel bedreigingen in deze industrie.

-Overheid. De overheid vormt een grote bedreiging voor de bierindustrie. Industry Profitability is decreasing due to heavy taxation and a declining market. Beer is one of the most heavily taxed consumer products. There largest cost in the price of beer is the tax that is placed on it by local and state governments. The industries profitability is also changing due to changing lifestyles, stricter laws, and a declining 18-34 age group.

The United States government plays an important role in the brewing industry on both the state and federal level. The federal government exerts pressure on the beer industry through the Alcohol Tobacco and Firearms (ATF) regulatory agency. The ATF is in charge of approving new products and new labeling from breweries. One of their major functions is to collect excise taxes from breweries as well.

State excise taxes, come in all different sizes and forms. States have the ability to charge not only an excise tax but also a tax on...