SABMiller is an international company with its main interest the brewing of beer. To understand SABMiller's strategic position is to consider their strengths and weaknesses against what is happening in the environment (Robson, 1997, p. 29). Annexure A reflects the prioritisation of the basic process of strategic analysis.
1.2. External factors affecting SABMiller
Annexure B contains a P.E.S.T analysis for SABMiller but since environmental factors are country specific it is most effective when performed for all countries of interest.
1.2.1. Political Analysis
Governments across the world take extreme measures to regulate alcohol because it affects the consumer's mind. The Miller deal exposed SABMiller to one of the highest regulated industries in the world. Re-establishing consumer loyalty towards the Miller brand will be made difficult by factors such as nationalism.
1.2.2. Economical Analysis
Figure 1.1 indicates that the acquisition of Miller ensured a greater balance between a cash-generative mature market and the cash-consuming developing markets. However, negative impact of brand, pack and geographic mix, increased cost of raw materials and greater energy costs make business in the USA difficult'. (SABMiller, 2003, p. 8)
1.2.3. Social Analysis
SABMiller assess their alcohol issues policy regularly to ensure responsible advertising, packaging, promotions and that the underage is not targeted.
They recognise their social responsibility towards HIV/Aids and provides support and training that focuses on the prevention of the disease.
1.2.4. Technological analysis
... middle of paper ...
...when the suppliers are able to force up prices or reduce the quality of the inputs they supply. SABMiller makes it difficult for any other brewery to establish itself in the South African market due to the strong bargaining position it has when buying its ingredients. Owing to the volumes it purchases, it can ensure that suppliers of ingredients, such as hops, look after SABMiller's interest first before supplying to other companies'. (Du Plessis et al, 2001, p. 44)
The combination of emerging market growth potential and the earning of hard currencies through Miller made SABMiller one of the most diverse players in the industry but its lack of experience and the loss of focus might be risky on the long run. SABMiller's strategy of growing through acquisitions put them in a position where the threat of hostile takeover is now highly unlikely.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Introduction: We all have seen how Alcohol has had a sizeable impact on sporting events. Sporting events such as the Heineken Cup In Rugby, The Guinness Autumn Rugby Internationals, and The Hennessy Brandy Gold Cup. The All-Ireland Senior Hurling Championship was called the Guinness Hurling Championship when Guinness was the main sponsor between 1995 and 2008. In England Liverpool FC were sponsored by Carlsberg and Heineken also sponsor the Champions League. These are just some brands that have become synonymous with sport.... [tags: substance abuse instigated by marketing]
1161 words (3.3 pages)
- ... Advertising: Once all the following research and information is gather, Miller begins develop advertising campaigns, by obtaining and doing of the previous they hope to unveil the most effective sales pitch to get the product sold to the target group. Location is another huge factor to look at in the sense of where to place more or less of a product. A city like Tallahassee has a massive influx of college students, and college students prefer cheap over everything. This is different from say San Antonio, Texas which has a larger family and working professional demographic.... [tags: location, target, marketing, beer]
2489 words (7.1 pages)
- The Marketing Mix The objective of this document is to gain an understandable idea of the marketing mix. The marketing mix is an indispensable element of every firm’s marketing arrangement. The marketing mix includes four key facets recognized as product, place, price, and promotion. The mix is the arrangement of the entire four groups in which a thriving marketing movement is generated. In an effort to identify with the elements of the marketing mix every category should be examined independently and the link connecting each one of the marketing blend or mix must be tackled.... [tags: Marketing ]
1459 words (4.2 pages)
- Marketing is defined as follows: Marketing is the process of interesting potential customers and clients in your products or services. In this essay, I am going to address the concept of “social marketing” and how does social marketing differ from “societal marketing” or “socially responsible marketing” in the first part, and in the second part, I am going to provide examples of each of the three approaches to marketing and analyse how these represent a departure from traditional marketing practice.... [tags: Marketing ]
1843 words (5.3 pages)
- Importance of Marketing Research Companies use marketing research to identify problems or opportunities that they might encounter. Organizations may also use marketing research to identify their strengths and weaknesses, and certain trends that are forming in their market. H&R Block is a tax service company that prepares state and federal taxes for individual customers and small to mid-size companies (H&R Block, 2010). This company has defined their marketing research and has different types of marketing research techniques it uses.... [tags: Marketing]
926 words (2.6 pages)
- Markering Introduction Steve Case founded America Online (AOL) in pre-Internet days when the networking of various computer systems was rather informal and difficult for all but the highly computer-literate to accomplish. His goal was to make accessing these networks easy enough for anyone to manage. Though AOL has changed dramatically since those days, ease of use has remained a primary consideration in all changes visible to the user. Much maligned by the more "serious" services (and their subscribers) in the past, AOL has risen to be the industry leader despite challenges and the image of being the J.R.... [tags: GCSE Business Marketing BTEC Coursework]
576 words (1.6 pages)
- Marketing Mix The success of a company relies greatly upon proper marketing. A company must have a proper mix of all the elements and marketing efforts in order to produce desirable sales results. This mix will include the variables and tools a company will use to satisfy the business objective and the needs of their potential customers. This mix which is determined by marketing research and experimentation is commonly known as the marketing mix. This mix consists of four variables which the business world often refers to as the "Four P's".... [tags: Business Marketing]
1557 words (4.4 pages)
- The importance of marketing: The increase in appointing a Chief Marketing Officer (CMO) shows the importance of marketing for many companies. They are on the same management level as Executive Officers and Chief Financial Officers. Jack Welch, General Electrics former CEO, stated ‘Change or die’ when it comes to surviving in business. What is Marketing. This chapter will take a look back on the fundamental elements of marketing and also what is happening in the 21st century. Definition: ‘marketing is an organisational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organisation and... [tags: Business Marketing]
1613 words (4.6 pages)
- Extended QFD: Multi-Channel Service Concept Design LUUK SIMONS & HARRY BOUWMAN Delft University of Technology, The Netherlands ABSTRACT The objective is to develop and test a multi-channel e-services design supportmethod that meets relevant design criteria. On basis of the evaluation of existing service concept design methods, we extracted relevant design criteria, such as customer orientation, channel coherence, channel synergy, competitive positioning, speed, focus and communication, and developed an alternative service concept design method, i.e.... [tags: Business Marketing]
1785 words (5.1 pages)
- Marketing According to the American Heritage Dictionary, marketing is defined is the act or process of buying and selling in a market, but what are some of the strategies that successful corporations use to gain an advantage over their competition. Successful companies invest up front to develop an advertising and promotions plan, which clearly outlines the goals and strategies of the organization. Once the plan is in place and ready to implement, identification of target markets must be determined.... [tags: GCSE Business Marketing BTEC Coursework]
495 words (1.4 pages)