Strategic management in the German brewing industry: Are there still differences between East and West

Abstract

Despite the reunification of Germany more than 15 years ago, substantial differences remain between the regions that once comprised the market-driven West and the socialist, centrally planned East. Although today's Eastern German economy is less competitive than the Western German economy, there are important exceptions to the rule. One exception is the food and beverage industry in which Eastern German companies have gained strong competitive positions. Did they reach this position by mimicking Western German blueprints, or did they go their own way? These questions are addressed in this paper by referring to a large-scale empirical study in the German brewing sector.