Social Media in the Real World

highly competitive. In Ireland, you can purchase a 500ml can of beer of 79c. Heineken is very much a premium beer, with a premium price. People’s buying behavious will very often been financially motivate and they will opt for a more competitively priced beer.

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(3) Social culture (Stats!!!)

Beer is the mostly commonly consumed alcohol beverage in the world. Traditionally, beer was seen as a drink of men to enjoy. However in recent years, beer is becoming more and more the drink of choice for females. This trend has proved to be beneficial for all alcohol companies.

The way in which we consume alcohol is changing. I mentioned previously that people do not frequent pubs and clubs as often as they would have since the global recession.

Demographics have a significant impact on the future success of alcohol companies. The Chinese market represents huge potential for Heineken. China is becoming more liberal and with a population in excess of 1.4 billion, they are now the largest importer of beer in the world.

(4) Technology

The main impact technology has had on Heineken is the potential for promoting the brand via social networks.

Home Brewing systems

Competitive rivalry within industry: (Porters 5 forces: opportunities, threats).

Porters 5 Forces:

(1) Bargaining power of suppliers

Heineken reply mainly on farmers to supply them with the raw marerials to brew the beer. Due to the high demand of agricultre products, this gives supplies a lot of power. Heineken have established long standing relationship with preferred suppliers. This enables them to prepurchase raw materials for future use at agreed prices. This means Heineken can minimise the potential threat of supplier power.

Heye Glas Nederland are the company who supply all the bottles for Heineken world wide. Pre 2002, Heineken held a 33% share in the company. In 2002, Heineken bought the remaining 67% of the company. This was a stategic move to ensure the supply of high quality export bottles at a lower cost to meet the needs for demand. This also mitigated