The document provides an overview of the Chinese beer industry including: 1) It is the largest beer market in the world but consumption per capita is low and there is potential for growth. 2) Porter's Five Forces analysis shows the market has low barriers to entry and no dominant brewers despite regional powers. 3) Success requires understanding price-conscious customers, political risks, and targeting regions like east and south China with higher incomes.

1. CORPORATE STRATEGY : Part. 1 : Industry Analysis Anheuser-Busch and Harbin Case Study

5. 3 .Segmentation of the industry

9. Porter’s Five Forces of competition (cont’d)

12. 6 .Strategic Groups (cont’d) National Wide Product Range Geographical Scope Regional Narrow China Ressources Entreprises Huiguan Brewery, King Long, Fujian Huiquan Harbin Group Tsingtao Beijing Yanjing Group

16. The industry life cycle Introduction Emergence Maturity Decline Demand (units/year) Time

17. Evolution of the life cycle over the life cycle End of Growth / Beginning of Maturity Demand - Mass market - Increasing demand Technology - Improvement of product composition Products - Commoditization - New products Manufacturing - Harbin achieved 90% capacity utilization - Consolidation Trade - Increasing demand imported brewing barley Competition - Bloody competition - Profits fall Key Factors of Success - Brand local presence - Price & Cost Management - Foreign Direct Investment

18. The Chinese beer market

19. A fragmented market

23. Thank you for your attention Any questions ?