Heineken Swot Analysis

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This report also contains a financial analysis of the company Heineken, in this analysis there has been made a comparison with one of her competitors, SABMiller. Heineken her solvency is lower than SABMiller, which makes it more difficult for Heineken to meet her obligations. The company’s liquidity is not good enough, because her liquidity lies below the standards. However, Heineken still has a better liquidity than SABMiller. Heineken her profit-earning capacity has increased to over the past few years to 8% and she also managed to do more with the same number of employees. The (net) profit per employee increased from € 19.912 in 2014 to € 26.000 in 2015. In the turnover and profit analysis Heineken her multiple business units were analyzed. …show more content…

The strategy of Heineken contains five important aspects: Growing the worldwide Heineken brand, being inspired by consumers, entrepreneurs and excellent processes, the use of her worldwide presence, stimulate leadership and integrate sustainability in her processes and business operations. The most important strengths of Heineken are her image, reputation, brand awareness, sustainability and her large market share. Weaknesses of the company are the lack of flexibility and a high fixed costs level. If these aspects are put together in a confrontation matrix, the opportunities and threats will result. Heineken her opportunities are the demand for sustainability and the growing market in Asia. Threats to the company are the economic crisis, the competition from substitution and private brands, the increasing amount of legislation and the diminishing European beer market. Heineken has three strategic options, firstly she can attack by using her strength for sustainability in order to meet the needs and wants of the society. Secondly, she can defend by using her image, reputation and brand awareness to control the increasing amount of legislation. Finally, she can strengthen her diminishing market in Europe by using the increasing margins in growing markets, such as Asia and Africa. The short (current year) and long (two years) term advice for a Heineken share is buy or hold, because of the increasing share price, health, promising future and profitability of the

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