SAB MILLER'S STRATEGY

Essay by anzudragonUniversity, Bachelor's June 2008

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Miller grew on the basis of its strength in developing markets, first in Africa and then in other parts of world. With its first acquisition in a developed market, Miller in 2002, it has become the second largest brewer by volume in the world and finds itself faced with a new set of challenges. This case study explains the business's development and the strategy of firm; it shows how the strategy has changed with time and provides the opportunity to consider its future at both the corporate and competitive strategy levels"SABMiller case studyII.Strategic position that SAB Miller finds itself in 20042.1 SWOT ANAYLYSISOVERVIEWThe brewing industry has been consolidating to secure brands and national positions. International brewers have also been investing for further growth, particularly in new and developing markets such as China, Latin America and Russia. Industry consolidation would raise the intensity of competition, which could lead to a loss of market share.

A.STRENGHTSThe company has a presence in more than 60 countries across six continents. SABMiller operates through five geographic regions including; North America, Latin America, Europe, South Africa and Africa and Asia. SABMiller operates in North America through its subsidiary, Miller Brewing Company (Miller), which is the second largest brewer in the US. The company's operation in Latin America consists of six countries including Colombia, El Salvador, Ecuador, Honduras,Similarly, its brewing operations in Europe primarily consist of eight countries including the Czech Republic, Hungary, Italy, Poland, Romania, Russia and Slovakia.

In Asia and Africa, the company operates in around 31 African countries and other Asian countries including China, IndiaThe global scale helps SABMiller, to develop its brands on a global level and provides a valuable platform for distributing and selling its international premium brands Miller Genuine Draft and Pilsner Urquell. It also helps the company to...