This document discusses Asia Pacific Breweries' (APB) strategy to restructure its business in China. It begins with an overview of APB and its operations. It then analyzes the attractiveness of different alcohol industries in China, concluding that the wine industry has the highest growth potential.
The document evaluates various business strategies and entry modes for APB. It determines that establishing a manufacturing operation through a joint venture would allow APB to capitalize on the wine industry's fragmented market, benefit from government support for domestic producers, and take advantage of a partner's local knowledge and relationships. This strategy is recommended over other options like distribution due to higher margins in manufacturing and challenges in the competitive distribution landscape.
Fx Risk Exposure Of Asia Pacific BreweriesMeggiePhan
- Identifying the kind of risk APB face when going global.
- Evaluating their current itnernational risk management
- Providing recommendations for improvement
About Company
Marketing Strategy
BCG Matrix
Porter Five (5) Forces Analysis
Bargaining Power of Suppliers
Bargaining Power of Buyers
Threat of Substitute Products or services
4P’s
CRITICAL EVALUATION OF HEINEKEN's CURRENT CAMPAIGNAlodia Fedora
This project is to analyse and evaluate Heineken's current campaign strategy for James Bond's movie, SPECTRE. We will analyse both internal and external factor of this campaign strategy and then using those analysis, we will create a new recommendation/new campaign strategy for Heineken&Bond 'SPECTRE'.
This project will basically study around 'integrated strategic management' of Heineken's campaign.
Fx Risk Exposure Of Asia Pacific BreweriesMeggiePhan
- Identifying the kind of risk APB face when going global.
- Evaluating their current itnernational risk management
- Providing recommendations for improvement
About Company
Marketing Strategy
BCG Matrix
Porter Five (5) Forces Analysis
Bargaining Power of Suppliers
Bargaining Power of Buyers
Threat of Substitute Products or services
4P’s
CRITICAL EVALUATION OF HEINEKEN's CURRENT CAMPAIGNAlodia Fedora
This project is to analyse and evaluate Heineken's current campaign strategy for James Bond's movie, SPECTRE. We will analyse both internal and external factor of this campaign strategy and then using those analysis, we will create a new recommendation/new campaign strategy for Heineken&Bond 'SPECTRE'.
This project will basically study around 'integrated strategic management' of Heineken's campaign.
This was a project that my team - which I am very proud of - did for a business school case competition. I took charge of conceptualizing, designing and producing the final deck of slides for presentation to our client from AB-InBev -- all within 24 hours! We delivered a great presentation and impressed the judges enough to achieve an outstanding team score. I hope you will enjoy viewing the slides as much as I did putting them together. And, if you ever find yourself in need of help to put together a professional slide presentation, remember to reach out to me -- I'd be more than happy to lend my expertise !
p.s. Thanks for the love, everyone. I'm excited to see my slides go viral within a day! Great if you could post your comments on this wall or email to francisfoo@wustl.edu.
Beer industry is characterized by the market share leaders in the business such as AB InBev, SABMiller, Heineken, and Carlsberg. Over the last decade, HEINEKEN has created incredible changes to become one of the beer giants in the competitive beverage industry.
This was a project that my team - which I am very proud of - did for a business school case competition. I took charge of conceptualizing, designing and producing the final deck of slides for presentation to our client from AB-InBev -- all within 24 hours! We delivered a great presentation and impressed the judges enough to achieve an outstanding team score. I hope you will enjoy viewing the slides as much as I did putting them together. And, if you ever find yourself in need of help to put together a professional slide presentation, remember to reach out to me -- I'd be more than happy to lend my expertise !
p.s. Thanks for the love, everyone. I'm excited to see my slides go viral within a day! Great if you could post your comments on this wall or email to francisfoo@wustl.edu.
Beer industry is characterized by the market share leaders in the business such as AB InBev, SABMiller, Heineken, and Carlsberg. Over the last decade, HEINEKEN has created incredible changes to become one of the beer giants in the competitive beverage industry.
As part of our Global Strategic Management (GSM) module, we were required to read through a Royco case study analyse the issues that the company was facing and perform our own analysis on the company and the industry.
From this analysis we were required to come up with recommendations to help Royco grow their business and resolve problems within the company
discusses distribution winning ways and processes with special emphasis from the fast moving consumer market.
channel development and management also discussed.
Here is the Power-point presentation ppt of Britannia Industries Limited. In this ppt we have described you about Mission statement, Vision Statement, Britannia's products, Britannia's competitors, Britannia's stakeholders, Positive and negative of stakeholders, Primary and secondary stakeholders, which stake holders are important and which are not also which stakeholders influence the most and which not, Britannia's Problem tree, Britannia's objective tree, segmentation, PESTEL analysis, Swot analysis, Tows analysis, 4Ps (i.e. Product, Price, Promotion, Place), Porter's five forces (Analysis), Business Model, BCG Matrix (Growth Share matrix), Consumer/Customer Perception, Strategic Recommendations/Suggestions.
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Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
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Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...PaulBryant58
This article provides a comprehensive guide on how to
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The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
2. Outline of Presentation
Overview of APB
Selection of Alcohol Industry in China
Business Strategy model
Entry Strategy
Conclusion
Re-alignment of APB’s
strategy in China
Overview
Industry
Business Strategy
Entry Strategy
Verdict
2
3. Overview of APB’s Business
Over 40 brands
Tiger Beer
Anchor
Heineken
ABC Stout
4 geographies
Industry
Business Strategy
Indochina /
Thailand
North Asia
Overview
South and
South East
Asia
Oceania
Entry Strategy
Verdict
3
4. Overview of APB’s Business
Latest acquisition & merger activity
In China
3 August 2012
Acquisition
(Completed)
52.43% stake in
Mongolian
Beverages
2012
Overview
Industry
Business Strategy
16 April 2013
Divestment
(Announced)
Shanghai
Asia Pacific
Brewery
2013
Entry Strategy
Verdict
4
5. Business in China
Subsidiaries in China
Heineken-APB
(China)
50%: Asia
Pacific
Investment
Hainan Asia
Pacific Brewery
Guangzhou
Asia Pacific
Brewery
50% Asia Pacific
Breweries
Heineken-APB
(Shanghai)
Mongolian
Beverages
Company Pte
Ltd
Sales and
distribution
Overview
Industry
Business Strategy
Production,
distribution,
marketing & sales
Low capacity
utilization at
Shanghai
brewery led to
$10.9m loss in
2011
Restructuring of
business to
focus on
premium brands
Entry Strategy
Verdict
5
6. RISA Analysis of APB
Rare
Imitate
(Difficult to
imitate?)
Substitute
(Difficult to
substitute?)
Appropriable
Marketing /
Branding
Y
N
N
N (Brand
equity)
Distribution /
Network
Y in SEA /
Apac
Y
Y
N
Financial
Strength
Y
Y
Y
Y
Management
team
Y
N
N
N
Financial strength: Sustainable competitive advantage
Overview
Industry
Business Strategy
Entry Strategy
Verdict
6
7. SWOT Analysis of APB
Strengths
Weaknesses
• Extensive brand offering
• Significant presence in Asia
• Strong financial performance –
Revenue and profit growth
• Adherence to high quality brewery
standards
• Organization structure caters to
localization
• Restrictions on alcohol advertising
• Weak presence in top beer
consuming countries such as China
and US
Opportunities
Threats
• Rising disposable income & cultural
shift towards alcoholic beverages in
Asia
• Positive growth in Asia Pacific spirits
market
• High competition
• Stringent government regulation
Strong position to tap growth of the Chinese alcohol market
Overview
Industry
Business Strategy
Entry Strategy
Verdict
7
8. Objectives for APB in North Asia
International
premium brand
strategy
Sustainability
Profitability
Overview
Industry
Business Strategy
Entry Strategy
Verdict
8
9. Moving On
Current situation
• Loss of $10.9m in
China /
Mongolia
geographic
segment due to
low utilization of
Shanghai
brewery
• Low penetration
in Chinese
market
Overview
Industry
Recommendations
• Restructuring of
China business
• Entry into wine
industry
• JV with a wine
manufacturer
Changyu
Business Strategy
Future situation
• Sustainability
• Premium brand
strategy
• Profitability for
China /
Mongolia
geographic
segment
Entry Strategy
Verdict
9
10. Selection of Alcohol Industry
8.0%
CAGR(P)
3.3%
CAGR(P)
15.4%
CAGR(P)
Alcoholic
beverages
Overview
Industry
Business Strategy
Beer
Spirits
Wine
Fermented starch
Alcohol content: 4-6%
Distilling after
fermentation
Alcohol content: >20%
Fermented grapes or
other fruits
Alcohol content:
10-20%
Entry Strategy
Verdict
10
11. Attractiveness of Beer Industry
Threat of New Entrant
• Low margins
• High barriers to entry
LOW
• Stringent government
regulations
Supplier Power
Competition
• Breweries with degree
of vertical integration
• Few suppliers quality
MODERATE
raw materials
• Suppliers can sell to
alternative markets
• Big 4 players with 58%
of total market volume
HIGH
• Wider range of beers
with low switching
costs
Buyers Power
• Supermarkets
negotiate on price
• Strong product
MODERATE
differentiation
• Low switching costs
• Low beer loyalty
Threat of Substitutes
• Low switching costs to
other substitutes
MODERATE
• Differences in
consumption patterns
Overview
Industry
Business Strategy
Entry Strategy
Verdict
11
12. Attractiveness of Beer Industry
Threat of New Entrant
• Low margins
• High barriers to entry
LOW
• Stringent government
regulations
Supplier Power
Overall:
Moderate
attractiveness
• Breweries with degree
of vertical integration
• Few suppliers quality
MODERATE
raw materials
• Suppliers can sell to
alternative markets
Buyers Power
Competition
• Big 4 players with 58%
of total market volume
HIGH
• Wider range of beers
with low switching
costs
• Supermarkets
negotiate on price
• Strong product
MODERATE
differentiation
• Low switching costs
• Low beer loyalty
Threat of Substitutes
• Low switching costs to
other substitutes
MODERATE
• Differences in
consumption patterns
Overview
Industry
Business Strategy
Entry Strategy
Verdict
12
13. Attractiveness of Beer Industry
Threat of New Entrant
• Low margins
• High barriers to entry
• Stringent government
regulations
Supplier Power
Competition
• Breweries with degree
of vertical integration
• Few suppliers quality
raw materials
• Suppliers can sell to
alternative markets
• Big 4 players with 58%
of total market volume
• Wider range of beers
with low switching
costs
Buyers Power
• Supermarkets
negotiate on price
• Strong product
differentiation
• Low switching costs
• Low beer loyalty
Threat of Substitutes
• Low switching costs to
other substitutes
• Differences in
consumption patterns
Overview
Industry
Business Strategy
Entry Strategy
Verdict
13
14. Attractiveness of Spirits Industry
Threat of New Entrant
• Well established basic
distillation technologies
• Steady growth
Moderate
prospects
• Brand loyalty
Supplier Power
• Availability of
alternative suppliers
• Manufacturers with
MODERATE
backward integration
• Input materials vary
based on spirits
Buyers Power
Competition
Many competitors in
a fragmented market
High
• Sell different spirits to
wide segments
• High exit costs
•
• Significant tariff
reductions
• Driven by consumer
MODERATE
preferences
• High buyer
independence
Threat of Substitutes
• Ease of switching to other
substitutes
WEAK
• Women are more health
consciousness
Overview
Industry
Business Strategy
Entry Strategy
Verdict
14
15. Attractiveness of Spirits Industry
Threat of New Entrant
• Well established basic
distillation technologies
• Steady growth
Moderate
prospects
• Brand loyalty
Supplier Power
Overall:
Moderate
attractiveness
• Availability of
alternative suppliers
• Manufacturers with
MODERATE
backward integration
• Input materials vary
based on spirits
Buyers Power
Competition
Many competitors in
a fragmented market
High
• Sell different spirits to
wide segments
• High exit costs
•
• Significant tariff
reductions
• Driven by consumer
MODERATE
preferences
• High buyer
independence
Threat of Substitutes
• Ease of switching to other
substitutes
WEAK
• Women are more health
consciousness
Overview
Industry
Business Strategy
Entry Strategy
Verdict
15
16. Attractiveness of Spirits Industry
Threat of New Entrant
• Well established basic
distillation technologies
• Steady growth
Moderate
prospects
• Brand loyalty
Supplier Power
• Availability of
alternative suppliers
• Manufacturers with
MODERATE
backward integration
• Input materials vary
based on spirits
Buyers Power
Competition
Many competitors in
a fragmented market
High
• Sell different spirits to
wide segments
• High exit costs
•
• Significant tariff
reductions
• Driven by consumer
MODERATE
preferences
• High buyer
independence
Threat of Substitutes
• Ease of switching to other
substitutes
WEAK
• Women are more health
consciousness
Overview
Industry
Business Strategy
Entry Strategy
Verdict
16
17. Attractiveness of Spirits Industry
Threat of New Entrant
• Well established basic
distillation technologies
• Steady growth
prospects
• Brand loyalty
Supplier Power
Competition
• Availability of
alternative suppliers
• Manufacturers with
backward integration
• Input materials vary
based on spirits
• Many competitors in a
fragmented market
• Sell different spirits to
wide segments
• High exit costs
Buyers Power
• Significant tariff
reductions
• Driven by consumer
preferences
• High buyer
independence
Threat of Substitutes
• Ease of switching to other
substitutes
• Women are more health
consciousness
Overview
Industry
Business Strategy
Entry Strategy
Verdict
17
18. Attractiveness of Wine Industry
Threat of New Entrant
• Attractiveness of market
• Regulations increase
barriers to entry
MODERATE
• Lack of adequate
distribution infrastructure
Supplier Power
Buyers Power
Competition
• Sourcing from own
harvests
• Sourcing from
MODERATE
independent growers
• Access to other
markets
•
Fairly fragmented
• High product
differentiation
MODERATE
• High fixed costs
• Marketing campaigns
•
•
•
•
50% price elastic
Repeat customers
Growing tourism
MODERATE
China opening up
Threat of Substitutes
•
•
•
•
Overview
Industry
Mainly beer, spirits
Low switching costs
STRONG
Expensive to store
On-trade demand
Business Strategy
Entry Strategy
Verdict
18
19. Attractiveness of Wine Industry
Threat of New Entrant
• Attractiveness of market
• Regulations increase
barriers to entry
• Lack of adequate
distribution infrastructure
Supplier Power
Buyers Power
Competition
• Sourcing from own
harvests
• Sourcing from
independent growers
• Access to other
markets
•
Fairly fragmented
• High product
differentiation
• High fixed costs
• Marketing campaigns
•
•
•
•
50% price elastic
Repeat customers
Growing tourism
China opening up
Threat of Substitutes
•
•
•
•
Overview
Industry
Mainly beer, spirits
Low switching costs
Expensive to store
On-trade demand
Business Strategy
Entry Strategy
Verdict
19
20. Attractiveness of Wine Industry
Threat of New Entrant
• Attractiveness of market
• Regulations increase
barriers to entry
MODERATE
• Lack of adequate
distribution infrastructure
Supplier Power
Overall:
Moderate
attractiveness
Buyers Power
Competition
• Sourcing from own
harvests
• Sourcing from
MODERATE
independent growers
• Access to other
markets
•
Fairly fragmented
• High product
differentiation
MODERATE
• High fixed costs
• Marketing campaigns
•
•
•
•
50% price elastic
Repeat customers
Growing tourism
MODERATE
China opening up
Threat of Substitutes
•
•
•
•
Overview
Industry
Mainly beer, spirits
Low switching costs
STRONG
Expensive to store
On-trade demand
Business Strategy
Entry Strategy
Verdict
20
21. Key Findings from P5
Fragmented
Government regulation
• Consolidation of smaller firms
• Explicit support for large domestic players
Fragmented
Highly dependent on consumer preferences
Muted demand
Overview
Industry
Business Strategy
Entry Strategy
Verdict
21
22. Choice of Industry: Wine
Future prospects
High projected growth
Forecasted CAGR: 15.4%
Rationale for choice of
industry
Rapid urbanization in
China
8,000.00
Cross fertilization of
cultures
7,000.00
6,000.00
Non-Grape Wine
5,000.00
4,000.00
Still Light Grape
Wine
3,000.00
Wine
Western tastes and local
customs: Strong market
demand for wine in China
2,000.00
1,000.00
2012 2013 2014 2015 2016 2017
Overview
Industry
Business Strategy
Entry Strategy
Verdict
22
23. Choice of Industry: Wine
Increasing cooperation
between domestic players
and foreign producers
Pertinent to enter wine
industry before industry
reaches saturation e.g.
Beer market
Overview
Industry
Business Strategy
Entry Strategy
Verdict
23
24. Choice of Business Strategy
VERDICT
Manufacturer
Overview
Industry
Distributor
Business Strategy
Entry Strategy
Verdict
24
25. Reasons for Manufacturing
Fragmented wine
market vs competitive
distribution landscape
High gross margins
• Manufacturer vs.
distributor margins:
37%vs10%
• China’s entry into
WTO will squeeze
distribution
margins
Gross margins (%)
40
37
30
20
10
10
0
Wine
Wine distributor
manufacturer
Overview
Industry
Strong gov support
& favorable
outlook
• Domestic wine: 80%
of local
consumption
• No single domestic
producer accounts
for >10% market
share
• 3 primary
distributors in the
market &
renowned wine
brands already
have a distributor
• 12th FYP: Aims to
grow high
quality domestic
production
• Infrastructure
and R&D
support for
producers
• Foreign imports:
squeezed as
domestic
production
increases
Business Strategy
Entry Strategy
Verdict
25
27. Characteristics of Entry Modes
Characteristics
Considerations
Merger &
Acquisition
• Equity / Assets acquisitions
-Foreign entity > 25%
• Subject to anti-monopoly
investigations
• Extensive and complex
regulations
• Slow to-market
• Legal complications
and costs
Joint
Venture
Agreement
• Shared risks
• Take advantage of partner’s
competitive advantage
• Simplified application process
• Ease of set up,
favorable conditions
Representative
Office
Overview
• Not a legal entity
• Purely marketing activity
• No direct contracts / business
dealings with local counterparts
Industry
Business Strategy
• Limited reach and
room for business
operations
Entry Strategy
Verdict
27
28. Characteristics of Entry Modes
Characteristics
Merger &
Acquisition
Considerations
• Equity / Assets acquisitions
-Foreign entity > 25%
• Subject to anti-monopoly
investigations
• Extensive and complex
regulations
• Slow to-market
• Legal complications
and costs
VERDICT
Joint
Venture
Agreement
Representative
Office
Overview
• Shared risks
• Take advantage of partner’s
competitive advantage
• Simplified application process
• Not a legal entity
• Purely marketing activity
• No direct contracts / business
dealings with local counterparts
Industry
Business Strategy
• Ease of set up,
favorable conditions
• Limited reach and
room for business
operations
Entry Strategy
Verdict
28
29. Types of Joint Venture
VERDICT
Cooperative JV
• May operate as separate
entities
• Limited liability possible
• No min. contribution
• Can withdraw registered
capital during contract
• Trade union must be
allowed to represent
employees
Overview
Industry
Business Strategy
Equity JV
• Min. 25% by foreign
investor
• Shared profit & risk
• Abide by Chinese
company and labor law
• Able to purchase land
• Withdrawal of registered
capital restricted
Entry Strategy
Verdict
29
30. Risk factors for entry into China
Knowledge &
Expertise
• Limited
knowledge on
regulatory
procedures
• Familiarity with
local preferences
and marketing
channels
Overview
Industry
Dispute / Exit
Resolution
Risk vs Returns
• Ownership =
high capital
outlay
• Share of
partnership
• Legal costs
• Labor and union
laws
• Intellectual
property, business
laws
Business Strategy
• Discourse for
disputes
• Exit strategies
• Cashing out
options
Entry Strategy
Verdict
30
31. Overcoming Risks Associated with JV
1.
Due diligence conducted before entering
contractual agreement:
-Understanding legal, regulatory frameworks
-Consider dispute resolution channels
-Plan exit strategies ahead
2.
Managing conflicts of interests and partner’s
reluctance to adopt new practices
-Communication of plans, corporate culture
Overview
Industry
Business Strategy
Entry Strategy
Verdict
31
32. Potential JV Partners
Shortlisted based on
Changyu
(Scale –
Largest
winery in
China)
Overview
Industry
Helan
mountains
(Awardwinning –
Decanter
World Awards
2011)
Business Strategy
Xi Xia King
(Strategic
alliance – JV
partner with
LVHM)
Entry Strategy
Verdict
32
33. Potential JV Partners
Shortlisted based on
Changyu
(Scale –
Largest
winery in
China)
Overview
Industry
Helan
mountains
(Awardwinning –
Decanter
World Awards
2011)
Business Strategy
Xi Xia King
(Strategic
alliance – JV
partner with
LVHM)
Entry Strategy
Verdict
33
34. JV With Changyu
Joint Venture with Changyu manufacturer
Possible synergies created:
To tap on Heineken-APB’s
1. Capital strength
2. Expertise in marketing
3. Distribution network in SEA
To tap on Changyu’s
1. Reputation in China
2. Long production history of 70 years in China
3. Local distribution networks
4. Scale
For growth in China and globally
Overview
Industry
Business Strategy
Entry Strategy
Verdict
34
35. Conclusion
Objectives of restructuring
Joint Venture with Changyu
manufacturer
Sustainable profits
Possible synergies created:
To tap on Heineken-APB’s
1. Capital strength
2. Expertise in marketing
3. Distribution network in SEA
Premium brand strategy
Wine Industry
To tap on Changyu’s
1. Reputation in China
2. Long production history of 70
years in China
3. Local distribution networks
4. Scale
High margins
Fragmented competitive
landscape
Overview
Industry
For growth in China and globally
Business Strategy
Entry Strategy
Verdict
35
36. Future Steps
[ Selecting a JV partner ]
Announced:
Sale of HAPB(Shanghai)
[ Negotiations ]
Sale of HAPB finalized
Negotiations begin
Test
batch
Early
2014
Apr 2013
Mid
2015
Mid2014
Dec 2013
Carrying out due diligence
Measuring ROI of project
Selection of JV partner
Overview
[ Operations ]
Industry
End
2015
2015
Grand
Opening
First
batch
Finalizing
partnership
Business Strategy
Entry Strategy
Verdict
36
37. Questions?
Current situation
• Loss of $10.9m in
China /
Mongolia
geographic
segment due to
low utilization of
Shanghai
brewery
• Low penetration
in Chinese
market
Overview
Industry
Recommendations
• Restructuring of
China business
• Entry into wine
industry
• JV with a wine
manufacturer
Changyu
Business Strategy
Future situation
• Sustainability
• Premium brand
strategy
• Profitability for
North Asia
segment
Entry Strategy
Verdict
37