Heineken SWOT Analysis 2022

Heineken SWOT Analysis 2022

Heineken SWOT Analysis: Heineken is one of the top brewers in the world has enjoyed sustained success for more than one and two decades. 

An analysis using the SWOT of Heineken can help you identify the strengths, challenges, weaknesses, and opportunities for the Heineken business over the next years.

heineken swot analysis

 

Heineken Company Profile

Name: Heineken N.V.
Year Founded:  1864
Industry:  Beer & Non-Alcoholic Beverages
Biggest Competitors: AB InBev, Carlsberg, China Resources Snow Breweries, Molson Coors Beverage Company
Headquarters:  Amsterdam, Netherlands
A number of employees: 85.000+ (2018)
Revenues: € 28.551 billion (2019)
Net Income: €2.166 billion (2019)

Strengths In The SWOT Analysis Of Heineken

heineken swot analysis

What business has an advantage that is cutting-edge over its rivals is typically called strengths. Heineken has these strengths:

  • Diversified Products for different markets: Though Heineken owns 250 brands, not everyone is available across all markets The company offers various products that are suited to different markets. Amstel, Primus, Walia as well as Heineken are the main brands that are available across Africa, the Middle East, and Eastern Europe. The American market is assigned popular brands such as Heineken, Tecate, Amstel, Sol, and Dos Equis as well as Heineken, Anchor, Larue, Tiger, and Bintang are being sold in the Asia Pacific. To cater to the European market, in addition to Heineken The company also sells other brands like Cruzcampo, Birra Moretti, Zywiec along with Strongbow Apple ciders.
  • Different flavors: Heineken beers are known for their various variants. Amstel’s for instance is sold in many different variants like:
  1. Amstel Lager
  2. Amstel Light
  3. Amstel Bright
  4. Amstel Premium Pilsener
  5. Amstel Radler
  6. Affligem (Double, Blonde)

Tiger is sold in various variants like

  • Orchard Thieves
  • Strongbow Apple Ciders
  • Stassen
  • Old Mout
  • Bulmers
  • Blind Pig

These varieties not only assist Heineken to reach an enormous audience but also help them meet the particular tastes of their customers.

  • Concentrate on Heineken Although Heineken sells a range of beer brands, it has only one global brand, which is Heineken. The company is focused on Heineken as the brand Heineken in all of their advertising and all the brands are featured as sub-brands in each region. This method has helped increase the recall of the brand and the recognition of Heineken.
  • The target segment is quite different from their rivals that do not have a distinct segment to focus on, Heineken focuses on the young adult market in their beer with flavors that are among their most distinctive products. The flavors were also selected after thorough research of how the targeted segment.

 Weaknesses In The SWOT Analysis Of Heineken

heineken swot analysis

They are often used to indicate areas in which the company or brand requires improvements. One of the major weak points that are present in Anheuser Busch are :

  • Currency Fluctuations: Heineken relies on foreign countries for over 70 percent of its profits and its fluctuating currency rates such as the Euro crisis, Brexit, and the rise of the dollar have impacted the profits of the company.
  • Low margins: The primary markets of Heineken are those in developed nations where the beer industry is maturing and their only selling factor for Heineken is the pricing. While Heineken enjoys good margins when it comes to flavor-based beers, the same can’t be said of their regular brand which makes up the bulk of their revenue.
  • Anheuser Busch Sab Miller Integration: Anheuser Busch and their largest competitor Sab Miller have entered into the merger that makes them the most powerful company in the business of liquor. This has had a major impact on the business worldwide of Heineken which will require significant strategies to combat this merger.

Opportunities In The SWOT Analysis of Heineken

heineken swot analysis

Opportunities are the avenues within the context surrounding the business that it could benefit from to boost its profits. Opportunities are :

  • Microbreweries: Many establishments around the world are now brewing their own beers, and their consumers are choosing these beers over brands-branded beers. This could be a great chance for experienced brewers like Heineken who are thinking of launching the microbrewery of their choice as a.
  • Exposure: In contrast to previous years, consumers have become more familiar with international brands of wine and beer, and today, a lot of young consumers specifically want a flavor-specific beer or signature wines with distinct flavors. This could be an excellent opportunity for Heineken to make money.

Threats In The SWOT Analysis Of  Heineken  

heineken swot analysis

  • Bad Perception And Regulations: Alcoholic drinks typically are associated with negative stigmas that surround their consumption. This is why governments as well as the legal departments have joined in and established drinking limits for alcohol. Although Heineken products adhere to the guidelines for health and safety, they must market their products. In addition, the company must be aware of the legal status of various nations prior to launching or promoting its products. A few people have suggested that Heineken isn’t a good brand to support sports events. This is why the company is advertising Heineken 0.0 percent, which contains zero percent alcohol in it. It’s a smart choice by the company. However, the company should be mindful of the packaging, transportation, and labeling requirements of the various markets.
  • Pandemic:  The outbreak caused by covid-19 and lockdowns, the closing of hotels, pubs bars, and clubs drastically decreased the sales and consumption of Heineken products. This is why the net earnings of the brewery brand fell to a significant extent. The businesses are expanding and consumption appears to be increasing. However, it will require a long time to see the market recuperate from the loss.
  • Healthy Trends: Healthy eating, non-alcoholic, alcohol-free (alcohol anonymous) and exercise trends are increasing in the younger generation. They’re turning down drinking alcohol. These trends could affect the expansion of Heineken.
  • Competitors: CR Beer, Kronenbourg & Super Rock, Carlsberg, AB InBev, and SABMiller are among the major rivals of Heineken. The merger of InBev and SABMiller reduced Heineken’s market share and the company became the world’s biggest beer producer in the year 2016. The rise of competitors, as well as their acquisitions and mergers, have pushed down the value of the brand.

Limitations of SWOT Analysis for Heineken

While it is true that the SWOT analysis is extensively used to plan strategic strategies, However, the analysis has its fair share of drawbacks.

  • Certain abilities or aspects of an organization can be both strengths and weaknesses at the same time. This is among the most important limitations that SWOT analysis has. Changes in environmental regulations could be a threat for companies, but as well as an opportunity in the sense that it allows companies to be on the same level or gain an advantage over its competitors when it is could develop their product more quickly than its competitors.
  • SWOT doesn’t provide a way to gain competitive advantages It is not a strategy to gain competitive advantage, therefore it should not be a complete solution.
  • The matrix is merely an initial point of reference for an analysis of how the proposed strategies can be implemented. It offered an evaluation window, but it did not provide an implementation plan based on Heineken’s strategic competitiveness. Heineken
  • The SWOT model is a static analysis that analyzes the current conditions with only a few potential modifications. When circumstances, capabilities threats, strategies, and circumstances evolve, the dynamics of the competitive landscape will not be apparent in one single matrix.
  • SWOT analysis could make a firm overemphasize one external or internal aspect when formulating strategies. There are interrelations among the most important external and internal aspects that SWOT doesn’t reveal, which can be vital in formulating strategies.

Weighted SWOT Analysis of Heineken

Due to the previously stated shortcomings of the SWOT analysis/ matrix, the corporate management determined to give an appropriate amount of weightage for each of the strengths and weaknesses of the business. 

They also consider the likeliness of events that will occur in the near future, and the impact they can be on a firm’s performance.

This technique is known as the Weighted SWOT analysis. It is superior to simple SWOT analysis as using weighted SWOT analysis Heineken managers are able to focus on the most crucial elements and ignore the less crucial ones. 

This also helps solve the problem of a long list which is when organizations make an extensive list, but with none is considered to be important.

Conclusion  

After conducting a comprehensive investigation of the swot analysis of Heineken We have discovered that Heineken is one of the biggest beer companies. 

The market is competitive health trends, the decline in market share and stricter regulations are just a few of the issues that the firm faces. 

Heineken should use its resources and advertise its healthy products to combat the negative image.

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