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Introduction
Heineken is one of the worlds largest brewers of beer and cider, in large part due to its business strategy. It pursues a cost leadership approach, providing a diverse selection of beer of both inexpensive and more premium varieties to customers. As a result, its brand is well known among target populations, who can rely on it to deliver a specific quality standard. The sales generated in this manner have helped the Dutch company expand and establish a significant presence worldwide. However, they are not the sole reason behind Heinekens massive success.
Main body
While the business limits its portfolio to beer and cider, it tries to cover all possible niches within the consumer market for these beverages. To that end, Heineken has acquired or created over 150 different beer brands, some of which are local, while others exist worldwide. The business has a strong global presence with products that have been adapted to specific markets. The constant research in which it engages to create new offerings improves the currently strong diversification further. It has been participating in this practice for a long time, and the trend continues today.
Conclusion
In its international endeavors, Heineken tends to engage in a transnational strategy. Its central offering, named after the company, remains the same regardless of the market and is available everywhere. However, it also acquires local breweries and releases various products that use distinct branding, which often does not indicate the parent company in favor of emphasizing its regionality. In doing so, Heineken can both capitalize on the strength of its central brand and offer the customers some alternative and possibly more suitable products. Its commitment to following these practices has led the company to achieve international success and become an industry leader.
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