Sabmiller Growth Strategies

Topics: Market penetration, Markets, Marketing Pages: 2 (522 words) Published: November 28, 2010
SABMiller became the second largest brewer by volume in the world. It faced stiff competition from Anheuser–Busch, its main competitor. SABMiller established a platform for future growth in North America after completing a three year turnaround plan, which enabled them to build up the market share and make progress. In China their attempted takeover of Harbin Brewery failed due to the competitive rivalry from Anheuser–Busch. Despite this failed takeover, their associate in China was well established as the second biggest brewer in the country. They were also able to integrate acquisitions which brought about good progress. In Indian, the beer market had high regulations, but SABMiller was able to increase volumes satisfactorily, focus on capacity expansion and improve quality and productivity. The global trend towards premium brands makes the industry attractive as it is the fastest growing in the global beer market. In order for SABMiller to compete on a global front, they had built a portfolio of international brands. A new programme was developed to refine SABMiller’s capabilities. This allowed them to establish common techniques and disciplines for releasing premium brands in new markets and it is now being applied globally. After establishing substantial presence in developed economies, their strategy shifted back to developing economies due to their proven competitive advantage. African markets such as Tanzania and Mozambique, gave more opportunity and Africa as a whole was encouraging. Stakeholders such as investors expect business growth and profits of their investment, so they could continue to re-invest and build the global portfolio. Management expects to have good performance and build on their competences and capabilities in order to have a secure job and earn good paying salaries. The consumers expect quality beverages at good prices compared to competitors’ brands.

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