Perceived Market Risks and Strategic Risk Management of Food Manufactures: Empirical Results from the German Brewing Industry

358 Perceived Market Risks and Strategic Risk Management of Food Manufactures: Empirical Results from...

instance,such as both the premium as well asand the low-price segments. Only 8 percent% of
the breweries under surveyed rely on a mono- brand strategy. About one- third of the respon-
dents declare state that their main brand generates less than 60 percent% of turnover; in 29 per-
cent% of the breweries the main brand's sales share of the main brand is even below 40
percent%.

5 Strategic Risk Management and Success

How successful are the described risk management strategies based on corporate and competi-
tive strategies? This question is answered exemplarily by referring to internationalization stra-
tegies which that have gained more relevance for many German breweries. Table 3
differentiates between cluster 1, i.e. —breweries with export or other international acitivities,
—and cluster 2, i.e. —breweries whichthat only sell nationally only. Since the empirical data
are not in a normally distributioned, we applied the Mann-Whitney non-parametrical test was
used. This testThe results revealed interesting differences between both the two clusters.

According to the empirical results, breweries with international activities perceive competitive
pressures in their national core market as a much greater threathigher Ist dies gemeint? Der Ab-
satz scheint, das Gegenteil zu betonen. than do non-internationalized companies. Internationa-
lization provides an opportunity to escape these pressure and, thus, to diversify market risks.
Internationalized breweries consider themselves being more competitive than their main com-
petitors, pursue a differentiation strategy based on strong brands, serve the premium segment
and put more emphasis on innovations. Furthermore, these companies are less satisfied with
their market share and grow more aggressively through acquiring other breweries or brands. All
in all, breweries which that reduce their dependence on the national market and, thus, diversify
their market risks perceive themselves as being more profitable.

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