Characteristics of Grolsch and Internationalization Strategy in the Global Beer Market
Overview
This paper examines the characteristics and competitive advantages of Grolsch, a Dutch brewery, including its distinctive ceramic swing-top bottle, employee welfare practices, and brand portfolio. It analyzes Grolsch's internationalization strategy as a response to declining domestic market consumption and competition from rivals like Heineken, positioning the company to compete in global markets.
What this coursework covers
- Characteristics of Grolsch - company history, Royal designation, organizational structure, employee welfare, product portfolio, and core competencies
- Internationalization of Grolsch - definition of internationalization, expansion into developed markets including Canada, Australia, France, US, New Zealand, and UK
- Lessons on Countries to Compete - analysis of Latin America and Africa as potential markets (section incomplete)
Preview
Name:
Instructor:
Course:
Date:
Characteristics of Grolsch.
Grolsch is an outstanding corporate based in the Netherlands with a huge market share in Northern Europe. It traced its roots as a brewery in Groenlo, Dutch when Willem Neerfeldt acquired it. It was later managed by Theo J. De Groen who in 1897, introduced the grand ceramic swing-top bottle. The bottle came as easy to open and could preserve the beer for later consumption. The company has remained relevant in the beer industry for the following peculiar characteristics:
Since it has had high stakes in the Netherlands, the government appreciated the company with the prestigious title –Royal in 1995. This later earned it the name; Royal Grolsch N.V. Grolsch has also been integrated as a two-tier company within the Dutch laws. It had two branches on which it has exclusive ownership. These included; Grolsch Bierbrouwerij Nederland, which was responsible for marketing and sales in the Netherlands and Grolsch International, which took charge of worldwide sales.
Before SABMiller assumed ownership, Grolsch had strengthened faster growth than its main markets as it obtained a return on investment beyond its average cost of capital. This consistently raising dividends and earnings per unit of capital. It also considered its non-monetary associates, mainly the surrounding community and employees. Grolsch had an employee welfare index varying from an average payroll value of €60,000 to the beer, which was classically supplied weekly to employee homes.