EABL Company Analysis

612 Words3 Pages
EABL’s strengths are its strong brand equity and an expanding market share in sector. EABL’s strong brand offering in beers, sprits, and non-alcoholic beverage gives the company a competitive advantage by attracting and retaining loyal customer, allowing greater profits, and expansion opportunities. For instance, the introduction of premium spirits, EABL’s weaknesses include its geographic diversity and weak operating profit margins. The geographic diversity can expose the company to areas of volatility such as market softness, which was experienced in Uganda, Tanzania and South Sudan. Uganda’s consumer purchasing power was affected by an economic slowdown; Tanzania’s beverage alcohol sector had a 25% rise in excise duty; and South Sudan’s consumer economy was impacted by a scarcity of hard currency. Furthermore, EABL’s operating profit in fiscal year of 2013 had a decrease of 19.5% compared to 2012. This is most likely due to the cost of sales increasing by 10% as the high prices of utilities, energy costs, warehousing and distribution, costs, depreciation, increased import cha...

More about EABL Company Analysis

Open Document