Investor strategy development and adaptation:: The case of Interbrew

Growing competition pressures in saturated West European beer markets coupled with shrinking demand challenged Interbrew SA, Belgium to enter the emergent prospective markets of Central and Eastern Europe by the acquisition of former state-owned enterprises. The study of this case shows the linkages existing between investor internationalisation strategy, motives, strategy implementation and adaptation in the highly volatile markets of Hungary and Bulgaria. The case represents a good example of slow reactive strategy adaptation to the Hungarian environment leading the investor to the loss of its first mover advantage. Using similar motives for its acquisitions in Bulgaria, Interbrew has successfully implemented a proactive adaptation of its initial strategy to the Bulgarian environment. The lessons from the case can be used by foreign investors to increase their chances for success in FDI acquisitions in transitional economies.