Swot Analysis

Only available on StudyMode
  • Download(s): 240
  • Published: June 24, 2012
Read full document
Text Preview
SWOT Analysis of San Miguel Corporation
* Corporate Profile
San Miguel Corporation (San Miguel) is one of the leading beverage, food and packaging companies in Philippines. The company offers more than 400 products such as beer, hard liquor, juices, basic and processed meats, poultry, dairy products, condiments, coffee, flour, animal feeds and various packaging products. It is also engages in heavy industries including power and other utilities, mining, energy, toll ways and airports. The company’s business activities are classified into seven segments, Beverage, Food, Packaging, Power Generation and Distribution, Fuel and Oil, Infrastructure and Telecommunications. The company operates more than 100 facilities in the Philippines, Southeast Asia, and China. San Miguel is headquartered in Manila, Philippines.

* STRENGTHS
Management and Corporate Reputation
The San Miguel Corporation as a formidable transnational company has a lot of strengths. Its utmost strength is its management and corporate reputation. Through the years, SMC has proven its threshold as the highest earner and leader in the multi lateral business sector. Because of this reputation, it has a good profitability rate due to large sales volumes. These two factors are essential in the increase in earnings per share and par value or market value per share that easily attracts potential investors. Market Share Leadership

Market share is defined as the percentage of an industry or market's total sales that is earned by a particular company over a specified time period. Market share is a form of unit that measures a company’s market competitiveness. The larger the market share of an entity, the more competitive it is and therefore it has a large sales volume that leads to reputation and prestige. For SMC, its leadership is a strength that made it edgy in the context of global innovation. Any venture it may want to pursue, SMC can expect support from investors and from the publics. Loyal Costumers

SMC had been in the business for 122 years and it is evident to its mere existence that there is a percentage in the global population who is loyal to its product. In its long existence as a leader in food and beverage industry throughout the globe, SMC has mastered the way to satisfy their consumers’ need and wants, and to touch the right buttons for them to return through weaving good relationship with them for years that created Brand Loyalty. Therefore, it is one of their strengths for SMC has established and positioned their brand and many people recognize and are loyal to it and will surely patronize its innovated products. Strong Financial Position

Its leadership in market share and its good management reputation ensures fluidity in the accounting statements of SMC. Its strong financial position and its financial stability ensure prospect investors a fair return of their investments that made it as one of its greatest asset. Also, because of the same reason, SMC has the edge when it comes to partnership deals and other formal relationship with clients, the public and even competitors.

* WEAKNESSES
No online presence
The San Miguel Corporation has a well established name in the Philippine market and has weaved brand loyalty to costumers. Because of these facts, they hardly find new means to increase and to pump up their marketing communication function and presume status quo on traditional promotions. But since now that the market is globalized and there is a slow internalization of the economy, other means to promote and distribute products has emerged. One of them and the most effective of all is the online marketing. SMC has a little presence online. It is so small that it is almost unconceivable to consumers. It has become a weakness in their part because it gives opportunities to competitors to penetrate and even cut their market, thus, may cut their market share.

* OPPORTUNITIES
Emerging markets and expansion abroad...
tracking img