ABSTRACT
The mainstream and unorthodox schools have polarised views on big business and competition and this has strong implications for developing countries. This research on the transformation of the global brewing industry suggests that giant firms do not necessarily bring about inefficiency and deter competition. The reality is that not only have global giants adopted the most advanced technologies in production, packaging and management but they have also pushed associated suppliers to match their high standards on technological innovations. Consequently, as the systems integrators, global giant brewers push ahead the technological standards of the brewing value chain. Giant brewers, most of which have a history dating back to the nineteenth century, have not lost vigour along the years, as Marshallians have suggested, but rather have gained tremendous competitive advantages and surpassed the latecomers in LDCs in a wide array of areas. Contrary to Marshallians’ claims that big businesses will lose their dominance in the long run, giant brewers are expanding their boundaries to an unprecedentedly wide geographical reach as a result of their vigorous global penetration, backed up by their strong competitiveness, which includes financial strength, advanced technologies, global brand management, operational and managerial efficiency, and enormous power in the value chain.
