Thank you for the interesting post. The decline in the traditional beer industry is something which has happened across Europe as a result of the rise in craft beer. Is this trend likely to further threaten Efes’ position in both Russia and Turkey? Would you know of key steps they are undertaking to limit the potential impact?
The distribution point is very interesting, notably considering the size of Russia. Is Efes’ strategy of focusing on premium products a way for them to focus on more urban consumers and therefore limit their need for a large distribution network?
As a final point, do you have any information on the impact of currency fluctuations on Efes’ operations? Considering its focus on Eastern European markets, I would imagine this is a significant issue for them. They could hedge but that strategy also has its limits. I wonder whether they are considering expanding to more stable markets or whether they will continue to focus on their core markets.
Thank you for the post!
Thank you for the great post Lucy! It is fascinating to see how one company became so successful by flipping the traditional mobile phone business model on its head. Managing to remain so popular, despite a much lower frequency of product updates is revolutionary. It often seems that in Western markets, lack of product innovation in the mobile phone industry is simply not an option.
I wonder what makes it possible in China? Would you say it is the quality of the company’s relationship with its customers, the higher quality of its products or possibly the lower disposable income of the population, which by decreasing the ability to change phones frequently means there is less of a need for constant product updates? I also wonder how applicable this model is in more developed markets.
Overall, a very interesting company and business model!
Thank you for a very interesting post. Axalta focus on emerging markets clearly makes sense, considering the growth in these regions compared to those in developed countries. However, don’t you think there are significant risks from putting so much importance on the Chinese markets? Three issues would seem most concerning:
1) A slowdown in growth
2) Rise of local competitors
3) Regulatory hurdles and rising costs of productions putting a dent in profitability
I do think that developing environmentally friendly products could be a game changer however in the country, both considering the recent efforts by the Chinese government and the recent agreements signed in Paris.