European beer markets are characterized by major changes that are forcing breweries to redesign their competitive strategies. In this paper, we analyze the changes in the German and Croatian brewing industries by referring to Porter’s five forces model and generic strategies framework. The analysis reveals growing competitive pressures in both markets and a wide spectrum of competitive strategies. Whereas in Germany cost leaders have gained market shares, the Croatian market is strongly influenced by the differentiation strategies of multinational brewing groups and medium-prized local brands. A comparison of the market characteristics and firm strategies in Germany and Croatia and some theoretical and managerial implications close the paper.
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