SABMIller's - Case Study Example

Some of these tools are explained in detail in the appendix given below. In view of the above assertion, it is significant to carry out a SWOT analysis of the above mentioned brewery in an attempt to establish if there is any correlation between its strategic position with its business strategy. “A SWOT analysis is a useful instrument for helping managers to identify internal strengths and weaknesses of a business and external opportunities and threats facing it,” (Strydom J. p 31). Basically, SWOT stands for strengths (S), weaknesses (W) while on the other hand the external environmental factors are regarded as either opportunities (O) or threats (T).

This analysis is very important to managers as it allows them to focus on key strategic issues based on the notion that an effective strategy fully utilises the strengths and opportunities of a business and strives to minimise the weaknesses and threats. One main strength of SAB is that it is a force to reckon with in the market of alcohol brewing. Its ability to merge with other brewers is a big advantage since it would only need to specialise on nurturing premium segments rather than launching a new brand altogether.

Local people often prefer to have a product which they can happily identify with hence there would be need to streamline the production to meet such needs. A close analysis of the case study shows that this is one of the major strengths of SAB since it is able to merge with established breweries. Weaknesses include the fact that it mainly relied on soft currencies for its profit in different breweries across the globe. A loss of confidence in emerging markets would badly damage its reputation.

In some instance as highlighted in the case, devaluation of the local currency in developing economies may have negative impacts such as the reduction of profitability. It can also be noted that there have been a shift in the behaviour of customers in the market where the emergence of wine as another