The strategic position is concerned with identifying the impact on strategy of the external environment, an organization’s strategic capability (resource and competent) and the expectations and influence of stakeholders. (Johnson & schools & Whittington, 2008) The strategic position that SABMiller has chosen to follow is to continue to protect and further develop its operations, whilst investing for growth in its international beer business, several acquisitions in last few years have given them a wide geographical spread which allows them to capture new growth in developing markets and value growth as consumers around the world trade up from economy to mainstream and premium brands SABMiller’s current strategic position has provided us with a clear picture of the opportunities and challenges it face in its’ business environment. But Stake holder expectations, the core competences and market reality does not match, which will create a dilemma for SABMiller. There is a set of choices available to SABMiller. They are (1) Consolidation (2) Product Development (3) Market Development (4) Diversification and (5) Joint Venture (1) Consolidation
This is a failsafe strategy which will focus on reducing risks in markets like Western Europe USA and Africa, while holding firm in the developing markets. This does not take in to account the competences developed by the company by initiating risky moves like the takeover of Grupo Empresarial Bavaria.
(2) Product Development
This is an aggressive strategy where by the SABMiller can respond to the market pressure by developing new products in to the market. This can be purely new products or transference of beer brands across markets. For most parts, this is a ‘business as usual’ strategy and will build on what SABMiller have been doing throughout the years. For example they have selling Castle beer throughout Africa.
(3) Market Development
Growth fuelled by entering new markets or new market...