Sabmiller Case Study
SABMiller Breweries Company Case Study
SABMiller Breweries Company
SABMiller Breweries Company
SABMiller breweries Company has grown since it begun over the years adopting different business strategies for its survival in the market. Surrounding environmental factors have affected its growth, and strategies that are put to counter different environmental situations. SABMiller is a South African company with its base in Johannesburg. It grew to being the second largest brewer company in the world.
Corporate logic
During the twentieth century, SABMiller's operation faced difficulties due to the apartheid regime. South Africa faced economic sanctions due to the apartheid regime which restricted them from doing business with, external international, markets. SAB moved their capital from London to their homeland Johannesburg to enable them operate with the sanctions. SAB prioritized Domesticconsumption to keep the breweries running. SAB concentrated most of its activities in southern parts of Africa hence expanding its market. It also tried to acquire licenses for brewing local drinks like Guinness. SAB tried to acquire local wineries as a course of their expansion strategy. By 1979, SAB was widely known in Lesotho, Botswana and Rhodesia while being the most distributors of drinks in South Africa estimated its distribution to 99%.
SAB invested further to joint ventures and beverage sector for expansion, like; the development of SAB's high profiled Sun City and Resort. SAB formed a nondiscriminatory code which increased its diversity despite the code not being particularly helpful in decreasing discrimination. With the introduction of multiracial democracy, SAB used the opportunity to expand across South Africa, by putting up three mega-breweries. The change in political weather eased up SAB's activities enabling expansion throughout Africa. The company's popularity in South Africa gave it an added advantage over the competitors as they had little chance of improving to overcome SAB.
SAB has developed due to careful choice of markets; they choose only potential markets in growing economies. They have also grown due to the high quality...
South African Breweries There are a few important trends in the international brewing industry. The first is consolidation (Fletcher, 2011). With slowing demand in major markets, many large brewers are seeking to do two things: improve their economies of scale and gain access to new markets. This has led to successive rounds of consolidation in the industry, with most of the world's largest brewing companies now global conglomerates of strong regional
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In this sense, one could consider launching several new brands, specifically adapted to the South African market, created especially for it. Second of all, in the markets where SAB is a challenger, the main strategic objective is the increase of the company's market share. The current activity in this sense, with the acquisition of several important brands, seems to have delivered the expected results. As a pointer, it is advisable
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