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SABMIller - Case Study Example

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SABMiller started its operations in South Africa during the apartheid era and since then grown to be one of the biggest beer brands in the world. It has taken a strategy of expansion based on organic and inorganic methods both. It is now spread over all major countries and regions of the world…
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Download file to see previous pages It has got into tie-ups with local producers to leverage their skills and also got into joint ventures with some of them as in case of India, Angola and Zambia. It has got into distribution alliances with entities in Vietnam. It has also followed organic growth, but after evaluation it is evident that SABMiller has relied significantly on inorganic strategies in its path of development.
The company's current strategic position of expansion and spreading of risks would augur well for the company, specially in the prevailing environment of economic slowdown in the western economies. The Asian economies are relatively in a better shape and this provides better growth opportunities for the brand.
Strength: SABMiller global presence, which is spread across different regions of the world, is a major strength. From economically developed markets like US or UK, or economically attractive markets like the rapidly developing nations like China or India, SABMiller has a presence everywhere. Being a South African origin company it is very strong in various African countries also. One of its prime strengths has been to grow and function amidst unfavourable conditions. ...
Strength: SABMiller global presence, which is spread across different regions of the world, is a major strength. From economically developed markets like US or UK, or economically attractive markets like the rapidly developing nations like China or India, SABMiller has a presence everywhere. Being a South African origin company it is very strong in various African countries also. One of its prime strengths has been to grow and function amidst unfavourable conditions. During the apartheid era in South Africa, the company did not give up in face of hostile trade sanctions by the international community; instead it focussed on growing its business in South Africa itself for the forty years following the 1950s. The training and practice the company management received during this long period stayed with them and has been a major plus point in their portfolio, whenever they have expanded their operations later on in different parts of the world, to manage unhelpful situations and realities.
Weakness: SABMiller till recently was a successful brand which had its base in Africa or to be specific in South Africa. This fact was not considered to be a positive by the business analysts, specially those form the established powers of the western part of the world namely, UK, USA. It was always pointed out that for the brand to be well accepted even in the West it had o acquire an established brand in that part of the world. In other words it was made clear that just basing upon its competence and products the South African breweries won't taste much success in the western market, instead it had to market itself hard in that region in order to gain respect and command. As a result of this in 2003 the company had to acquire US based Miller and rebranded itself as SABMiller, ...Download file to see next pagesRead More
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