Analysis Of Guinness Anchor Berhad

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CHAPTER 1: INTRODUCTION
1.0 Nature of business
Guinness Anchor Berhad is a Malaysia-based company and has been listed on Bursa Malaysia since 1965. It was incorporated on 24 January 1964 under the name of Guinness Malaysia Limited and changed its name to Guinness Malaysia Berhad on 15 April 1966. Then it developed from the merger of Guinness Malaysia Berhad and Malayan Breweries (Malaya) Sdn Bhd ("MBM") in 1989. (Worldwide Company Profile, 2015) The company operates the Sungei Way Brewery, located in Selangor which began operations in 1965.
GAB mainly is engaged in the production, packaging, marketing and distribution of beverages and alcoholic. It’s portfolio of brands, including Molson Coors, Heineken International, Asia Pacific Breweries and AB InBev. The company’s brews include Tiger, Anchor, Tiger Radler, Guinness, Kilkenny and Heineken. Beverages being produced such as Guinness Stout, Guinness Draught, Tiger Beer, Heineken Beer, Baron’s Strong Brew, Anchor Ice Beer, Anchor Smooth, Kilkenny Draught, Lion Stout, Anglia Shandy
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(Martin, 2014) On top of that, they may also imply the same strategies as Guinness such as cost leadership in which increase profits by reducing costs while charging industry-standard prices. As those companies are now competing with Guinness, this may be affects the profits, prices and strategy of Guinness. For instance, Guinness could not increase their products’ price and if they do so, customers have the option to easily switch to their competitors such as Carlsberg who offering lower price for the same products. As a result, the profit of Guinness may be driven. Hence, Guinness may end up having little or no power in its own industry if there is a variety of quality products are offered in the market in direct competition with it. (Katherine Arline,

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