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Grolsch Growing Globally Case Solution
Grolsch had started off as a regional organization and it gained ground in the Netherlands over the years. It had become famous in the Netherlands and it was even offered the "Royal" title by the Dutch government in 1995. This shows how influential it was in the Netherlands and how far it had come. Grolsch ended up shifting from a family business to a multinational as it expanded its operations around the world. It had realized the importance of internationalization and had been working on it to increase its global ranking. It stood at 21 in 2007 and it hoped to reach the top 10 list in the upcoming year. The organization ended up being acquired by SABMiller in 2008.
Following questions are answered in this case study solution:
Grolsch utilizes the MA framework for EVALUATING the attractiveness of beer markets in various COUNTRIES; for EACH of the MA (Market Attractiveness) elements individually, which would you retain, eliminate, modify----and why?
Grolsch utilizes the BA framework for a different reason: (a) explain the reason that Grolsch uses the BA framework, and (b) for EACH of the BA (Business Assessment) elements, identify which would you retain, change, or eliminate, and explain why you would do so.
Review the exhibits in this case that show the attractiveness of the beer markets in various countries in terms of beer consumption and growth: does Grolsch perform well in the most attractive countries i.e. the ones with the greatest volume of beer consumption and high growth? Please explain briefly your answer.
EXTRA CREDIT OF UP TO +0.3—Please explain briefly your choice as to the type of multi-country company that is Grolsch (BEFORE its relationship with SAB Miller) using the BARTLETT textbook descriptions: Global, Multi-national, International, or Transnational (choose one only).
Case Study Questions Answers
The company had various products which showed their diversity. Their product line was divided into two brands which were Grolsch and Amsterdam. The Grolsch brands represented 90% of its domestic volume which consisted of its premium Lager.
The company had expanded into different markets, and it had become famous around the world for its beer products offered around the world. Their bottles were unique, and their taste was different which ended up attracting customers. However, it began to lose sales and production volumes in the Netherlands which disrupted its sales.
Moreover, the company had come up with the MABA framework which allowed it to compare itself against its competitors and analyze its markets and itself. This provided it with a method to compare itself against its competitors and identify where improvements needed to be made in its strategy.
1. Grolsch utilizes the MA framework for EVALUATING the attractiveness of beer markets in various COUNTRIES; for EACH of the MA (Market Attractiveness) elements individually, which would you retain, eliminate, modify----and why?
Grolsch was a beer brand in the Netherlands that was purchased by SABMiller in 2007. It ranked 21 among the top global brands and it planned on coming in the top 10 list which meant that it needed to grow faster than its competitors in the markets they were engaged in. Grolsch had initially focused on local growth and they did not focus much on international growth. However, they realized the importance of internationalization and they knew that they had to up their game in key markets. In order to analyze their growth in the markets they had expanded into, they came up with the MABA model. This model was divided into market attractiveness and business assessment. The market attractiveness framework consisted of multiple factors. It relied on multiple growth indicators to measure its growth in a different market. These indicators consisted of total volume in hectoliters and volume growth in hectoliters of its international premium larger segment. Moreover, it also consisted of the differences in prices between its premium larger segment and the prices offered by its competitors in the markets it was in. Lastly, it also consisted of geographic and cultural distances which were further divided into four components. The first two indicators are related to its international premium Lager Segment, and they measured the volume that was sold and growth in the volume sold. This was effective and important because they had analyzed that their volumes had decreased previously. By taking this into consideration, they can calculate the exact change volume. This would provide insight into its growth which was essential as they had to see where they stand in the market. This is why these indicators should be retained as they provide essential information and will help Grolsch in identifying which countries were not doing well. Moreover, the third criterion was the differences in price between Grolsch and its competitors. Prices are essential as it provides insight into whether other friends are selling similar products for a cheaper price or a higher price. Lower prices mean that customers would purchase beer from the competitor. However, it would also help the organization compare its prices. This would allow them to make the decision of whether they should lower prices to attract and retain customers or whether they could charge a higher price without losing customers. This criterion also played an important role and should be retained to measure the differences in prices.
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