Question

Heineken starts by exporting its product into new markets and then ______ to a local brewer to establish its position in the market.

a) Acquires the local brewer
b) Partners with the local brewer
c) Licenses the local brewer
d) Competes with the local brewer

Answer 1

Heineken's strategy when entering new markets is to export their product and then form partnerships by choosing option b), which allows them to share local market expertise and reduce risks.

Step-by-step explanation:

When Heineken enters new markets, their strategy often involves initially exporting their product. Subsequently, to establish a more significant market presence and secure their position, Heineken typically opts for a collaboration approach. In this context, the best answer to the question would be b) Partners with the local brewer. Through such partnerships, Heineken can leverage the local brewer's existing distribution channels, knowledge of the local market, and customer base. This strategy can help Heineken to adapt their product offerings to suit local tastes better and enhance the brand's local acceptance without completely taking over a local brewery, allowing them to navigate complex regulatory environments and reduce investment risks.