Sabmiller Case Study Solution

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CASE STUDY ANALYSIS March 21st 2014 CASE STUDY SABMiller CASE STUDY ANALYSIS CASE STUDY – SABMiller SABMiller SABMiller is a multinational brewing and beverage company, older than the state of South Africa, where it originated. It is the world's second-largest brewer (after AB InBev). Brands: Fosters, Grolsch, Miller Brewing Company, Peroni Nastro Azzurro, Pilsner Urquell… Global Presence: It has operations in 75 countries across Africa, Asia, Australia, Europe, North America and South America. SABMiller now faces an important decision. Where to go from here? CASE STUDY ANALYSIS CASE STUDY – SABMiller Porter’s 5 Forces – Beer Industry Substitutes Very high - there are a lot of options in the market for alcoholic…show more content…
ers Growth in Africa and China CASE STUDY ANALYSIS CASE STUDY – SABMiller ANALYSIS OF THE FIRM’S STRATEGIES IN TIME STRATEGY WHEN BUSINESS RESTRICTIONS OCCUR Dominant domestic beer production by: • Acquisition of competitors • Rationalization of products • Expand product portfolio •Obtain licenses to brew other beers •Diversification into other industries RESULT: Market dominance in Africa STRATEGY TO ENTER GLOBAL MARKET Develop brewing capabilities in undeveloped beer markets by: • Acquisitions • Joint Ventures • Becoming a “Turnaround specialist”:  Buy share in a brewery with a local partner Retain the brand but improve it (quality, consistency, marketing, distribution) RESULT: Increase of total sales and economies of scale STRATEGY TO ENTER DEVELOPED MARKET Acquire major brand in the USA: • Acquisition of Miller Brewing Company • Penetrate a growing beer market RESULT: Diversify risk and currency Increase confidence in the firm’s image Acquire a mature cash cow CASE STUDY ANALYSIS CASE STUDY – SABMiller ANALYSIS OF PAST AND CURRENT CHALLENGES PAST CHALLENGES  Economic sanctions and restrictions for businesses in South Africa  Become less reliable on emerging markets that are highly unstable  Market share loss in South African market (dominance decreased) CURRENT CHALLENGES  Consolidation in the industry  Difficulty in finding new breweries to acquire  Acquisitions no longer release high financial returns  Growth is slowing in Eastern Europe

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