Strategic Position Sabmiller Company Business Essay

SABMiller company has a good technique to promote the quantity and productivity of major markets, optimize and grow a recognised position in the market of producing countries, seeking value-added opportunities to strengthen its position as a worldwide beer producer in the international top quality beer portion develop their own brand, and actively participate in the ongoing consolidation in the industry. SABMiller's success will depend on its strategic emphasis: balanced and attractive global business, a strong brand stock portfolio and grow its businesses worldwide activities in the relevant market, the design of performance appraisal, the introduction of a solid relevant market.

1. 1. 1 Corporate acquisition

Acquisition a brand or a business is a means that can enhance the company's competitiveness and increase its market share. For the SABMiller, if it purchases a brandname or business, it can get a new turnover. It could gain new locations as well as factories and retailers. Not just that, but it will gain new products and technology enabling itself to enter into a new market. By the way, commercial acquisition can also give SABMiller other benefits, such as, increased value era, increase in cost efficiency and upsurge in market show. So a good and right acquisition plan for the continuing future of the SABMiller's tactical position is very important.


1. 1. 2 International operations

For an international company, like SABMiller, foreign market and operations tend to be important than location's. International procedures can reduce product costs, spread financial risks and absorb extra capacity over a wider variety of markets. Foreign procedures can allow firms to set up development facilities of less expensive in locations close to raw materials and cheap labor. For instance, china has a huge market show, SABMiller can enter into Chinese beer market by some operations, and build factories in different cities, seek the services of local labors to reduce costs. So SABMiller's proper position should more tend to foreign operations rather than local operations.

1. 2 A new vision

Nowadays SABMiller's eyesight is to be the most popular company in the global ale industry, that including investment of preference, employer of preference, partner of preference. In the foreseeable future, SABMiller can develop a new eyesight that to be the most innovation and technology company in the global ale industry.

1. 2. 1 Mission statement

For the clients, SABMiller is remaining attentive to consumers' changing needs and desires are central to competitive success. Their products face competition from rival brands and from other types of leisure activity: if we neglect to offer customer and consumers the best price, quality and service, the business enterprise are affected and with it the riches we create for many stakeholders.


For the merchandise, SABMiller has a strenuous, group-wide method of quality

control and product security. On most sites this is situated around external standard system, such as ISO, NOSA.

For the technology, water scarcity, low energy costs anticipated to large-scale investment in fossil gas alternatives. SABMiller has been researching steps to make more ale using less normal water and reduce their energy and carbon footprint.

For the matter of employees, SABMiller seeks to be always a preferred employer. Employee development SABMiller looks for to create a host in which all individuals and clubs may develop their full prospect of the benefit for themselves and the group. Employee diversity SABMiller companies understand and value the wide range of human diversity where they operate and encourage inclusiveness with regard to human source practices, irrespective of (among others) nationality, race, gender and physical disabilities.

1. 2. 2 Strategic objective

In the SABMiller, there are four major strategic objectives: making a healthy and attractive global get spread around of businesses, expanding strong, relevant brand portfolios that gain in the neighborhood market, constantly raising the success of local businesses, Leveraging our skills and global scale.

1. 3 Strategic options


There are three tactical options for SABMiller

˜ Product development

˜Market development


Porter's Generic Strategies

Cost command ˜

Differentiation ˜

Cost target ˜

Differentiation target ˜

Ansoff's Matrix

Market penetration

Product development ˜

Market development ˜

Diversification ˜

The Boston's BCG Matrix

Stars ˜

Question markings ˜

Cash cows ˜


Option ˜ (Product development): Product development strategy, it is to indicate in the current market by the improvement of current products or develop new products to extend sales strategy. Product development strategy can avoid business briefly, optionally, blind development and into some no market value of the products, and ignore that really can improve competitiveness in the market of products opportunity. Product development strategy is the enterprise product development of armed forces road map to steer product development route and road indicators.


Analysis using Universal Strategies : For the merchandise development, the most important thing is not expanding new products but enhancing current products.

So the simplest way is choosing cost management, reducing the price tag on product whenever you can. SABMiller should focus on developing cost and personnel cost. As the beverage company, SABMiller can research new technology that use less normal water to create more ale. Then, they can build their factories in producing countries, such as Indian, China and Malaysia, using cheap labor to lessen the cost.

Analysis using Ansoff's Matrix: SABMiller can stretch its product by producing different variations, or packaging existing products it in new ways. Develop related products or services, shorten its time to market, or improve customer support or quality.

Analysis using BCG Matrix: The further development of star product is the main. In the SABMiller, there are in least five beer's brands that are popular in South Africa, Miller Genuine Draft, Pilsner Urquell, Peroni, Amstel and Castle Light Lager. These five beers occupy the 75 percent market talk about in South Africa. So constantly increasing the marketplace and increasing these star products are the key ways of SABMiller.

Option ˜ (Market development): Market development strategy is the organization in the complex market environment, to attain specific marketing goals and design of the long-term, stable action plan, form the guidance


enterprise marketing global goal and management policy. Market development strategy is the unity of the target and means. No goal, we have no way, no strategic steps, the goal is extremely hard.

Analysis using Generic Strategies : On the market development, SABMiller should use target strategy, cost emphasis and differentiation concentrate. For the cost focus, SABMiller can try its best to reduce the cost, then they can reduce the price of these products, it is a good way to keep customer's commitment and get more new customers. For the differentiation focus, suppliers have force due to low quantities, but a differentiation-focused firm is better competent to pass on provider price increase.

Analysis using Ansoff's Matrix: SABMiller can aim for different geographical marketplaces, use different marketing stations, such as direct sales or online, if you through the trade offering, target different sets of people, perhaps with different genders or age ranges from your normal customers.

Analysis using BCG Matrix: In the field of product produce large amounts of cash, however the future growth prospects are limited. This is a leader of mature market, it's the source of venture cash. As the market has matured, the business do not need to a great deal of investment to increase the size of the market, at exactly the same time as the marketplace leader, this business enjoy economies of level and high marginal earnings advantages, thus brings to the enterprise to large amounts of cashflow. Organization often uses cash cows business to cover the account


and support other business that need a large amount of cash. Cash cows for the business enterprise strategic framework stated stable strategy, goal is to

keep the market share of the SBUs.

Option ˜ (Diversification): Diversification will involve growing the scope of products or markets served by an organization. Related diversification entails diversifying into products with relationships to the existing business.

Analysis using General Strategies: A differentiation technique for SABMiller products and competitors' products that have significant differences to create the distinctive characteristics. SABMiller shows the distinctions between its products and competitors.

Analysis using Ansoff's Matrix: Diversification can be a good choice, for SABMiller, but compared to other options, it is not very attractive. Actually, SABMiller is a publicly bought and sold company that can manage their own portfolio harder for real profile management as a shareholder. It can work and only the SABMiller company, when you can add business, the portfolio can support and accentuate its core ale business.

Analysis using BCG Matrix: Diversification is to lessen the chance of investment, but it addittionally has risk. So we should use question marks to examination these diversified investment, a good investment can make products become to celebrities or cash cows but an undesirable investment can also mean that the investment is fail. If 9

SABMiller create a new beer, it will analysis whether this beer can occupy the marketplace share and have high development.

1. 4 Recommendation

Above those three strategic options, I am going to recommend market development to SABMiller. SABMiller achieved great success in South Africa market, but to the globe, the largest market is China. Chinese language customers take in forty-five million seven-hundred and sixty thousand lots beer every year. If SABMiller can choose a correct market development strategy in China, it'll get a larger development.

1. 5 Conclusion

The a key point to SABMiller's success is its management of proper brand and its own brand portfolio. However in the future, it must face more problem and competitive. SO SABMiller should continue improving its strategy, developing

innovation and technology.

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