Beer is one of the most used beverages in the world next to coffee and tea. The beer industry therefore as we can imagine is one of the biggest industries in the world with many competitors inside of the industry. It is not surprising that many different kinds of beer and a variety of brands can be found in both Italy and Canadaï¼Œand both of the countries has a long history of development of brewery industry as well.
In this articleï¼Œwe are going to compare both of the countries’ marketsï¼Œindustry conditionï¼Œcultural differencesï¼Œpolitical background and so forthï¼Œall those information will be taken into considerationï¼Œand be processed to make the final decision on which county environment is more suitable and beneficial for us to invest into.
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Some theories are going to be applied to analyse the cultural dimensions of both countriesï¼Œsuch as Hofstede’s cultural dimensionsï¼Œand SWOT analysisï¼ŒPorter’s Five Forces Model.
The methods i use to compile my factbook is that i are going to apply some frameworks from respected authors that are most applicable to my chosen industry (beer industry) such as Hofstedeï¼ŒSWOT analysis and Porter’s five forces.
Hofstede measures the cultural dimensions differences in different countries. There are five dimensions in this frameworkï¼Œnamely the Power Distance Index (PDI)ï¼Œthe Individualism-Collectivismï¼ŒMasculinity-Femininity and Uncertainty Avoidance. Since Hofstede measures cultural dimensionsï¼Œtherefore it will be used in the cultural system page of the paper when the cultural aspects are discussed.
SWOT is the abbreviation for Strengthsï¼ŒWeaknessesï¼ŒOpportunities and Threats. It is an analytical framework to help summarize in a quick and concise way the risks and opportunities for a certain companyï¼Œfor my case the beer industry in two different countriesï¼ŒCanada and Italy. The SWOT analysis looks into internal factors within the company/industry/country (Strengths and Weaknesses) and external factors outside the company/industry/country (Opportunities and Threats). This method will eventually help us to look at the main positiveï¼Œ(strength and opportunities)ï¼Œand the negativeï¼Œ(weaknesses and threats)ï¼Œsides of both countries when comparing. Initially this should help us decide on which country would be most attractive to invest in the beer industry. For this reasonï¼Œthis method will be used at the end of the paperï¼Œwhich will give us an conclusive overview of the both countries.
Porter’s five forces model argues that there are five forces in an industry to determine the extent and scale of the competition. These five forces affect the industries’ attractiveness. It is an efficient tool to analyse competition in the industry. In this modelï¼Œfive forces are the threat of substitute products or servicesï¼Œthe threat of the entry of new competitorsï¼Œthe intensity of competitive rivalryï¼Œthe bargaining power of customersï¼Œand the bargaining power of suppliers.
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