Analysis of Sabmiller

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ANALYSIS OF SABMiller’s DIVERSIFICATION AND COMPETITIVE STRATEGIES INTRODUCTION SABMiller PLC is a global giant in the brewery industry and has a track record of innovation and growth. Being one of the world’s biggest brands, SABMiller has adopted a unique style to ensure competitive advantage and remain at the forefront of the brewing world. Key to its developing and maintenance of relevance are its values and strategic priorities Values include: Recognition of people being an enduring advantage Emphasis on accountability Teamwork Respect for consumers and customers Indivisibility of reputation Strategic priorities include: • Creating a balanced and attractive global spread of businesses • Developing strong, relevant brand portfolios that…show more content…
The number of joint ventures in its Financial Statements further buttresses this point as its operations significantly involve other entities. The acquisitions mentioned in the Financial Statements are also significant. Different climes would require different strategies for success and so to keep at the forefront in global business, the adoption of a flexible growth system is critical to maintaining the success enjoyed by SABMiller. COMPETITIVE STRATEGIES A competitive strategy means ‘taking offensive or defensive actions to create a dependable position in an industry to cope with... competitive forces and thereby yield a superior return on investment for the firm. Firms have discovered many different approaches to this end, and the best strategy for a given firm is ultimately a unique construction reflecting its particular circumstances ‘. (MICHAEL PORTER) Strategies can be one of; A) COST LEADERSHIP: means being the lowest cost producer in the industry as a whole. B) DIFFERIENTIATOR: is the exploitatation of a product or service which the industry as a whole believes to be unique. C) FOCUS: involves restriction of activities to only a part of the market (a segment). SABMiller as an international brand and based on the financial statements given in the case study has successfully adopted a mixture of being both a cost leader and a differentiator in exploiting opportunities such as economies of scale and scope, premium quality
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