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Cultural turnaround at Club Med Essay

Analysis – Political actions against over-consumption restrictions by government (prohibition, taxes..) – Economical cost reduction rise of off-trade because of sales/discounts in supermarkets rise prices of packaging economy crisis – Social health and fitness customers drink more wine then before beers demand – Technology innovation in beer production, new brands, flavors increase in efficiency – Environmental acquisition and mergers lower pollution, green enterprise – Legal restrictions in advertising age restrictions drink driving Action – Political Governments are campaigning strongly against drunken driving – Economical The off-trade is increasingly dominated by large supermarket chains such as Tesco or Carrefour, which often use cut-price offers on beer in order to lure people into their shops, and Heineken complained of an 11 per centrise in packaging costs.Heineken complained of an 11 per centrise in packaging costs

Heineken complained of an 11 per centrise in packaging costs – Social – Environment America and Australia to reduce agriculture subsidies could result in a change in the industrys raw material supply base would increase the costs of raw materials – Legal the 1989 Monopolies and Mergers Commission (MMC) to have a control over the mergers and the take-overs taking place in the United Kingdom FIVE FORCES Analysis Threat of entry low threat capital intensive loyal customers Threat of substitutes wine and licker, soft drinks Power of buyer loyal customers switch to substitute Power of suppliers packaging suppliers energy suppliers Competitive rivalry low product differentiation big competitive rivalry

Action Threat of entry This strategy would prevent competitors from countries like Japan and the USA to come in the industry and compete with firms from the region. Threat of substitutes When the government passed regulations on drinking alcohol drinks in public many people switched from beer to wine and other drinks like coca- cola which have become substitute of beer Power of buyer the ability of customers to put the firm under pressure, which also affects the customers sensitivity to price changes.

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