Grolsch Company Essay

1. Yes, several of the major players have been actively engaging in mergers and acquisitions, leading to a more concentrated market with big market shares for the leading firms.2. There is non a clear leader which absolutely dominates the industry. While Heineken is the leader in the outside(a) market, Bud (Light) leads total volume. There is also no core, the leading companies in international and total volume markets differ from each other.3. In its process of expansion, Grolsch has engaged in both cooperation with topical anaesthetic brewers, and direct ecstasy from domestic factories, depending on the markets demand. For markets such as the USA that valued originality, direct shipping was used. For others that did not hold an emphasis on this, joint venture options were explored to cut costs.4. No, standardization is not increasing. absolute majority of Grolschs sales come from its Grolsch Premium Lager, with other variations such as Amsterdam beers. Packaging was not st andardized around the globe, products shipped to different markets had country-specific labels. Grolsch is also priced differently in various markets, priced at a high price in its domestic market.5. It implies that minimum target should be to further enhance operations, increasing take and distribution efficiencies to achieve cost reduction in order to remain profitable.6. Variation is quite queen-sized on cross-country markets. Grolsch is priced as a premium brand in non-domestic market and a mid(prenominal) range standard product in the Netherlands for Grolsch Premium Lager. Also, the different products offered in different regions also affect them differ in profitability. For example, the home market that accounted for roughly 50% of sales in volume generated 65% of revenues with even higher EBIT.7. Profits are most tightly linked with volume, with national sales as it is the most profitable providing the highest EBIT and lowest distribution costs. International sales have s hown to be slightly less(prenominal) profitable but still important in overall profitability.8. Price-sensitivity for beer is relatively low, with many competitors in the market so distribution on economic profits should lean more towards suppliers and complementors.9. Labor took up more or less 15% of revenues compared to 4% to 6% on advertising. Hence, the industry Grolsch is in is most likely labor-intensive.