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Their resources can be best outlined though a resource audit under the following categories: Physical — domestically France the company has access to large breweries capable of producing upwards of 10 million hectolitres2 and in invested an additional FF million in industrial plant and equipment.
Also has access to some international breweries through acquisitions including in Spain and Greece. On the distribution side domestically the company had acquired 60 warehouses. Human — following a shift in focus to automation in the s, the company entered a phase of restructuring.
Levels of hierarchy were removed and jobs were phased out. However, the company has sought to encourage professional development and to develop staff skills through personal training and apprenticeship schemes.
Financial — Brasseries Kronenbourg has a strong balance sheet3 showing significant profits year on year. The company is also has the benefit of being backed by its parent group Danone which is described as the third leading food marketer in Europe.
These are the resources available to Brasseries Kronenbourg, but it is the way in which they are utilised that identifies the core competencies of the company.
Core Competencies The case study concentrates on the international strategy of the Brasseries Kronenbourg company and it is clear to see why the company chose the strategy it did when its core competencies are considered.
Expertise — the company clearly has an established expertise within its domestic market in producing and distributing its product. Research and development, staff restructuring, training programmes and the development of distribution channels have all led to a more efficient process.
The company knows how to do what it does well and any international strategy would seek to take advantage of this fact and attempt to transpose this knowledge into a new market.
Brand Management — the company had a number of highly successful domestic brands that had even acquired a reputation internationally as premium brands. The company had also innovated with a diverse portfolio of brands which include upmarket beersGoldnon-alcoholic Tourteland low alcohol Kronenbourg Light.
However, the Danone Group has its stated goal as being the number 1 or 2 in each division it operates in, firstly in Europe and then the World. In order to achieve this aim it was clear that exports alone would not generate enough volume to take a significant market share in each country.
As Brasseries Kronenbourg had the majority of its physical assets in France it would be extremely costly and time consuming to try and enter numerous foreign markets through establishing its own manufacturing, distribution channels and marketing.
Instead the company was able to use the substantial financial backing of its parent company in order to enter into beneficial partnerships with or acquire local breweries in each of the markets it wanted to target.
When a company was brought into the group the company it would look to transfer skills and possibly restructure in order that it could benefit from the expertise that they had from their domestic operations.
Brasseries Kronenbourg also ensured that it maintained marketing rights for its own brands which allowed it to build on its other main core competence.
Brand management appears to have been a major asset to the company as it sought to expand internationally. The company chose to use its most established domestic brands for each new market and this allowed the company to rapidly develop a local presence without too high marketing costs.
With such a wide range of products they would also be able to take into account external influences, such as tastes and fashions, in each market and provide different brands in different countries accordingly.
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Competitive Advantage In forming their strategy Brasseries Kronenbourg will have also considered the sources of competitive advantage that they can exploit. The bases of ompetitive advantage are best surmised as follows:Added a case to allow students to apply line balancing and service blueprinting.
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