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Michael porter diamond model



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  • 1. Michael Porter Diamond Model<br />Demand Condition:-<br />[Summary] ■World’s total consumption volume was around 150.392 million kL (up 4.2% from the previous year) and growth has been recorded for 19 consecutive years. Total consumption volume is equivalent to filling 121 Tokyo Domes.■As for individual countries, China was the biggest consumer (up 14.6% from the previous year), topping the list for 2 years in a row. Russia has recently shown a noticeable growth (up 11.1% from the previous year) to move up one rank, sharing the 4th position with Brazil. Also, the Japanese market has grown from the previous year (up 0.7%) for the first time since 2001.■Regionally, Asia is coming close to Europe, which is the world’s largest beer market. This is due to the growth in China, of course, but is also attributed to a significant increase in Thailand (up 10% from the previous year) and the Philippines (up 15.6% from the previous year).<br />1. Beer Consumption by Country (Table 1)<br />Worldwide, beer consumption in 2004 increased by approximately 6.1 million kL (equivalent to 9.64 billion bottles in standard size 633-mL bottles) from the previous year, amounting to around 150.392 million kL (up 4.2% from the previous year; equivalent to 237.59 billion bottles in standard size 633-mL bottles), recording 19 years of consecutive growth.If Tokyo Dome, which has a capacity of 1.24 million kL, is compared to one beer mug, the total consumption volume in the world would be equivalent to 121 mugs and the increase from previous year 4.9 mugs. If Osaka Dome with a capacity 1.2 million kL is used in the comparison, the total consumption would amount to 125 mugs and the year-on-year increase 5.1 mugs.Moving up one rank last year, China has secured its No. 1 position again this year. The volume consumed in China is 4.67 million kL more than that in the US, which firmly establishes this Asian country as the world�s largest beer market. Compared to last year, China�s growth rate has increased, which suggests a greater potential for the market to expand. Furthermore, due to a growing health consciousness, people in Russia are switching from vodka to lighter alcoholic beverages such as beer. This trend is reflected in the rapid growth of the Russian beer consumption market, which now shares a high rank with Brazil. Asian countries enjoying strong economic growth, Thailand and the Philippines in particular, also demonstrate a rapid growth. The market in Japan remains at the same position in the ranking but has grown 0.7% after 2 years of decline due to the record-breaking heat-wave and introduction of new genre in 2004.<br />2.Beer Consumption by Region (Table 2)<br />All regions except for Oceania have demonstrated growth, boosting the worldwide consumption volume. The growing Asian market has pushed the world consumption volume up, and is coming close to Europe, which is the largest beer market.<br />3.Per Capita Beer Consumption (Table 3)<br />No significant changes are seen in the top ranking, but the mature markets in European countries have all shown a decrease, including the Czech Republic which has been on the top for 12 years. Per capita consumption in Japan has increased from last year by approximately 0.6 bottles in standard size 633-mL bottles, but dropped to the 32nd position.<br />Note 1:Total consumption volume in Japan includes that of beer, happo-shu (low-malt beer) and new genre.Note 2:Figures in 2003 may have been corrected from the previous survey. In that case, updated figures are used.  Source:Kirin’s original survey conducted on beer associations around the worldERC Statistics International Ltd.The Barth Report �Hops� 2004/2005 (Joh. Barth & Sohn) and others<br />* Attachments:Beer Consumption by Country, Beer Consumption by Region, Per Capita Beer Consumption by Country (one page each)<br />Future goals<br />In Japan, Kirin has recently terminated high-profile merger talks with rival Suntory Holdings Ltd.    ‘‘While merger talks have failed, market and competition environment changes have prompted the two companies (the first- and second-largest food makers in Japan) to have negotiations on a grand design,’’ Miyake said. ‘‘International food industry realignment will accelerate in the future.’‘    Miyake said he will try to achieve the group sales target of 3 trillion yen for 2015, compared with 2.28 trillion yen for 2009. ‘‘The key point is that all group companies should enhance cooperation in developing products.’‘    In domestic operations, Kirin plans to launch in April the new health food brand of Plus-I under which group companies will launch products for their respective business areas.    ‘‘This is a new business for the future,’’ Miyake said. ‘‘We aim to achieve 30 billion yen in sales for the new brand in 2012.’’<br />Aims of 2007-2009 Medium-term Business Plan Position KIRIN as a brand that symbolizes trust and vitality Deliver the enjoyment of food and health through products and services in each operational area Contribute to the continuous development of a safe and secure society, maintaining a strong reputation as a corporate group that values its coexistence with communities   Basic strategy 1. Strengthen Kirin's business foundations and realize a quantum leap in growth   (1) Create renewed growth in the domestic alcohol beverage business   (2) Move further toward becoming a comprehensive beverages group   (3) Internationalize Kirin's business   (4) Develop the health food and functional food business   (5) Accelerate growth in pharmaceuticals and leverage proprietary strengths to develop the agribio business 2. Pursue a financial strategy that maximizes corporate value 3. Adopt a new group management structure 4. Raise KIRIN brand value and implement Kirin Group CSR   Quantitative targets <br /> 2009 target2006 forecastChangeKV2015 targetsConsolidated sales including liquor tax¥2.15 trillion¥1.68 trillion+28.0%¥3 trillionConsolidated sales excluding liquor tax¥1.7 trillion¥1.27 trillion+33.9%¥2.5 trillionOperating income¥150 billion plus¥117 billion+28% plus¥250 billion plusOperating profit margin including liquor tax7% plus7%-8% plusOperating profit margin excluding liquor tax9%9%-10% plusROE7% plus5.4%+ 1.6 points10%<br /> <br />Factor conditions<br />Secure higher levels of customer support and loyalty in the growing new genre category, and strengthen Kirin's sweeping position in the happo-shu category. Reinforce core brands in the beer category<br />Further strengthen Kirin's top position in the RTD (Ready to Drink) category for pre-mixed cocktails, aiming to develop our product portfolio and grow overall demand. Expand Kirin's presence in the markets for type A and type B shochu<br />Strengthen marketing activities tailored to individual areas, reinforce quality improvement and safety and reliability in our raw materials and at our production facilities, and pursue efficient SCM strategy to ensure that each division produces, transports and sells products of value to customers<br />Create synergies with other Kirin group companies such as Kirin Beverage and Mercian, targeting all parts of the value chain from product development through to sales<br />Develop our own social contribution program based around the themes of the environment, product development, and food safety and reliability, and making use of using the technology of Kirin Group<br />Related Industries<br />Motorola picking system streamlines<br />Kirin Brewery supply chain<br />When Japanese soccer fans settle down in front of the TV to watch this year’s soccer World Cup in Germany, there’s a good chance they’ll do so while enjoying a Kirin beer<br />After six years as No. 2, Kirin this year looks set to become Japan’s biggest brewer, outselling archrival Asahi Breweries during the first three months of 2006. And as sponsor of Japan’s national soccer team, Kirin reckons the World Cup will help increase beer sales by 5% this year. <br />The early signs are good. More than 5 million beer-loving fans have signed up for a promotion offering a chance to win soccer T-shirts in return for buying Kirin brews. <br />Kirin Brewery Co., the official sponsor of the Japanese team, has released a limited edition beer, with pictures of team members on the cans. <br />TROPICANA PRODUCTS AND KIRIN BREWERY ESTABLISH JOINT VENTURE <br />FOR JUICES AND FRUIT-BASED BEVERAGES <br />MONTREAL, Oct. 12 /PRNewswire/ -- The Seagram Company Ltd. (NYSE: VO) announced today that its Tropicana Products, Inc. subsidiary and Kirin Brewery Co., Ltd. of Japan have signed an agreement to establish a joint venture in Tokyo to produce and market juices and fruit-based beverages. The joint venture will be called Kirin-Tropicana, Inc. <br />Robert L. Soran, Tropicana president, said: " We established our Tropicana International Group in 1989 to implement expansion into worldwide markets. Our agreement with Kirin marks the first such … <br />