ABSTRACT

We have seen that, in the epoch of the global big business revolution, global giant brewers gain tremendous competitive advantages in the ongoing global consolidation. The fight for dominance by global giant brewers and the fight for survival and growth by local brewers shape the dynamic competition landscape of the brewing industry. Global giant brewers’ ambitious penetration into the Chinese market is radically altering the competition matrix of the Chinese brewing industry and speeding up the consolidation process. Large Chinese brewers are facing unprecedented challenges. Their increasing strategic alliances with foreign brewers raise deep questions. This chapter examines the catch-up gaps that Tsingtao Brewery, the largest Chinese brewer, faces, and its tremendous efforts to shorten the gaps by making a range of strategic adjustments in its fight for national championship. The analysis of Tsingtao’s struggle to catch up has strong implications for other large indigenous firms.