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Sabmiller Case Study Solution

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CASE STUDY ANALYSIS
March 21st 2014

CASE STUDY SABMiller

CASE STUDY ANALYSIS
CASE STUDY – SABMiller

SABMiller
SABMiller is a multinational brewing and beverage company, older than the state of South Africa, where it originated. It is the world's second-largest brewer (after AB InBev). Brands: Fosters, Grolsch, Miller Brewing Company, Peroni Nastro Azzurro, Pilsner Urquell… Global Presence: It has operations in 75 countries across Africa, Asia, Australia, Europe, North America and South America. SABMiller now faces an important decision.

Where to go from here?

CASE STUDY ANALYSIS
CASE STUDY – SABMiller

Porter’s 5 Forces – Beer Industry
Substitutes
Very high - there are a lot of options in the market for alcoholic beverages such as: -Cider -Wine

Supplier Power Low -“The Group was already large enough to use purchasing power to force down ingredient prices” - They own most of the supply chain (they buy breweries)

Rivalry among competitors Intensive - Industry that keeps consolidating - ABInbev -Heineken

Customers bargaining power Low Customers don’t interfere with the price-making

Threat of Potential new entrants Medium to Low - Anyone can start a brewery but it is difficult to become main player - Cost advantage - Lot of capital needed - Reputation

CASE STUDY ANALYSIS
CASE STUDY – SABMiller

SWOT

Strengths
Background/ History Heritage Global presence Firm's Reputation & Stability Capacity to overcome struggle Industry Knowledge Cost Advantage Diversified & Large Portfolio Money

Weaknesses
Most of firm’s profits are in soft currencies Not sufficiently presented in developed countries Bad deal record (Miller acquisition)

Opportunities
New markets Innovation

Threats
Various substitutes in the market Strong Competition Economical Crisis Increasing consolidation in the industry Little room for expansion in South...

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