Essay --

Heinekens follows a differentiation business strategy and multi-domestic strategy. Heineken gains a competitive advantage by distinguishing their products by creating premium Light beer line, portable draught beer system (DraughtKeg), and redesigning their bottles. Heineken Premium Light attracted customers without taking sales away from their other beer selection. The decision regarding the launch of their new product was to enkindle brand awareness in the U.S. market and react to changes in the growing global market. Major source of Heinekens revenue comes from their subsidiaries. The mergers and acquisitions of the local beer brands in turning point markets such as the recent five brewers in Nigeria have provided a gain in the local market share. Using a multi-domestic strategy, a major source of revenue results from their subsidiaries and they have had an increase in sales since 2006. The raw materials needed to produce the beer are mainly supplied by farmers. Therefore, the bargaining power of these suppliers is utmost and can affect Heinekens costs. The consumers in the beer industry ha...