Case Analysis Of Sabmiller

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The company's strategy of focusing on local brands has produced positive results in terms of volume sales performance in African and Latin American markets. SABMiller's strong presence in Middle East and Africa and Latin America, and high CAGR for the 2013-2018 period, is expected to strengthen its position globally and support its strategy of local branding. In emerging markets, consumer tastes are much more diverse and localised, and SABMiller responds to this via the development of provincial beers where product distribution is limited and illicit trade is significant. SABMiller's significant presence in mid-priced and premium lager supports its top ranking position in various African and Latin American markets. However, the company is losing out on the potential growth from other categories and the potential of brand equity to be gained from developing a wider range of beer alternatives.…show more content…
Few major brewers have strategic alliances that can boost their global presence. SABMiller's options are limited to buying MillerCoors in the US and thereby threaten A-B InBev's almost 50% volume share. Anheuser-Busch InBev has been growing inorganically into newer markets and strengthening its businesses by a series of mergers and acquisitions. These strategies have strengthen the company's lead in the global market and the company produced 20% of the worldwide beer (in volumes) in 2013. AB Inbev is currently anticipating to buy its main rival SABMiller, the second highest brewer in the world. The speculation led to a surge in stocks of both the companies recently - SABMiller's stock went up by nearly 10%; the target has been valued at $98 billion after the rise in the
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