Swot Analysis - Heineken

SWOT Analysis - Heineken

Strengths

One of the strengths of Heineken’s success is its business strategy of global market expansion. Heineken N.V. began its business in Amsterdam, the Netherlands, and started to export products to markets in America and other countries during 1920s. By expanding the market, Heineken N.V. not only established a more well-known and reliable global brand to consumers, but also opened the door for international acquisitions. Besides Heineken, Heineken N.V. owns more than 200 beer brands over the world, which given the company a strong differentiation advantage. Lastly, the designs of logo and bottle are other strengths that make Heineken a successful global brand. The green bottle design and the mini keg products strongly catch consumers’ attention; and most of the people may not notice that the “e” in Heineken’s logo looks like a smile.

Weaknesses

Even though Heineken has become a well-known global brand, its business is still affected by some weaknesses. Heineken N.V. was struggled to obtain larger breweries in certain countries due to their conservative culture, some countries strongly convince their people that alcohol could really damage to human’s life. On the other hand, the size of Heineken N.V.’s brewers had already grown so large that it could hardly find any brewer larger than the one it is using. Heineken N.V. has been facing a “drinking age” issue. Most of the people who consume Heineken are older; the average consumption age is 30. Heineken N.V. has been trying to create an image which can be accepted by teenagers and local markets in different countries. The last weakness that Heineken owns compared to other competitors is the price. Normally, a domestic beer only costs $7 per six pack, but Heineken costs $10 per six pack.

Opportunities

However, the factors from external environment can provide many opportunities for Heineken N.V. Nowadays, people care more about their health, even to the people who love to have...