Strategic Position Sabmiller Company Commerce Essay

Strategic Position Sabmiller Company Commerce EssaySABMiller companionship has a positive outline to promote the quantity and w areivity of major foodstuffs, optimize and combust an established smudge in the market of developing countries, seek value-added opportunities to strengthen its position as a global beer manufacturer in the international premium beer segment develop their own scrape, and actively participate in the ongoing consolidation in the industry. SABMillers success depends on its strategic focus a balanced and attractive global business, a strong brand portfolio and expand its operations worldwide activities in the relevant market, the style of performance appraisal, the ontogeny of a strong relevant market.1.1.1 Corporate acquisitionAcquisition a brand or a business is a way that croup improve the companys competitiveness and ontogenesis its market share. For the SABMiller, if it buys a brand or business, it give the axe spring up a new turnover. It can gain new locations as well as factories and shops. Not only that, but it will gain new products and engineering enabling itself to enter a new market. By the way, corporate acquisition can also give SABMiller other benefits, such as, increased value generation, increase in cost efficiency and increase inmarket share. So a good and right acquisition plan for the future of the SABMillers strategic position is very important.31.1.2 Foreign operationsFor an international organization, like SABMiller, immaterial market and operations are more important than locations. Foreign operations can reduce unit costs, spread economic risks and absorb excess capacity over a wider number of markets. Foreign operations can allow firms to scar up production facilities of lower cost in locations close to raw materials and cheap crusade. For example, china has a huge market share, SABMiller can enter Chinese beer market by some operations, and build factories in different cities, hire local labors to reduce costs. So SABMillers strategic position should more tend to foreign operations rather than local operations.1.2 A new visionNowadays SABMillers vision is to be the most admired company in the global beer industry, that including investing of choice, employer of choice, partner of choice. In the future, SABMiller can develop a new vision that to be the most innovation and technology company in the global beer industry.1.2.1 delegacy statementFor the customers, SABMiller is staying responsive to consumers changing needs and desires are central to competitive success. Their products face competition from rival brands and from other types of leisure activity if we fail to aim customer and consumers the best price, quality and service, the business will suffer and with it the wealth we create for all stakeholders.4For the products, SABMiller has a rigorous, group-wide approach to qualitycontrol and product safety. On most sites this is based around external standard system, such as ISO, NOSA.For the technology, water scarcity, low energy costs due to large- scale enthronement in fossil fuel alternatives. SABMiller has been researching how to make more beer utilise less water and reduce their energy and carbon footprint.For the concern of employees, SABMiller seeks to be a like employer. Employee development SABMiller seeks to create an environment in which all individuals and teams may develop their full potential for the benefit of themselves and the group. Employee diversity SABMiller companies understand and respect the wide set off of human diversity in which they operate and encourage inclusiveness with regard to human resource practices, irrespective of (among others) nationality, race, gender and physical disabilities.1.2.2 Strategic objectiveIn the SABMiller, at that place are four major strategic objectives creating a balanced and attractive global spread of businesses, developing strong, relevant brand portfolios that win in the local market, constantly raising the profitability of local businesses, Leveraging our skills and global scale.1.3 Strategic options5There are three strategic options for SABMillerProduct development foodstuff developmentDiversificationPorters generic wine StrategiesCost leadership Differentiation Cost focus Differentiation focus Ansoffs MatrixMarket penetrationProduct development Market development Diversification The Bostons BCG MatrixStars Question marks Cash cows DogsOption (Product development) Product development strategy, it is to point to in the current market by the improvement of current products or develop new products to expand gross sales strategy. Product development strategy can avoid opening temporarily, optionally, fraud development and into some no market value of the products, and ignore that squarely can improve competitiveness in the market of products opportunity. Product development strategy is the enterprise product development of military road map to guide p roduct development direction and road signs.6Analysis using Generic Strategies For the product development, the most important thing is not developing new products but improving current products.So the best way is choosing cost leadership, decrease the cost of product as much as possible. SABMiller should focus on manufacturing cost and staff cost. As a beer company, SABMiller can research new technology that use less water to produce more beer. Then, they can build their factories in developing countries, such as Indian, China and Malaysia, using cheap labor to reduce the cost.Analysis using Ansoffs Matrix SABMiller can extend its product by producing different variants, or packaging existing products it in new ways. rebel related products or services, shorten its time to market, or improve customer service or quality.Analysis using BCG Matrix The further development of friend product is the most important. In the SABMiller, there are at least five beers brands that are popular in South Africa, Miller Genuine Draft, Pilsner Urquell, Peroni, Amstel and rook Light Lager. These five beers occupy the 75 percent market share in South Africa. So constantly expanding the market and improving these star products are the main strategies to SABMiller.Option (Market development) Market development strategy is the enterprise in the complex market environment, to achieve specific marketing objectives and design of the long-term, stable pull through plan, form the guidance7enterprise marketing global goal and management policy. Market development strategy is the unity of the goal and means. No goal, we provoke no way, no strategic measures, the goal is not possible.Analysis using Generic Strategies In the market development, SABMiller should use focus strategy, cost focus and specialty focus. For the cost focus, SABMiller can try its best to decrease the cost, then they can decrease the price of their products, it is a good way to make unnecessary customers loya lty and energise more new customers. For the differentiation focus, suppliers have power due to low volumes, but a differentiation-focused firm is better able to pass on supplier price increase.Analysis using Ansoffs Matrix SABMiller can tar germinate different geographical markets, use different marketing channels, such as direct sales or online, if you through the trade selling, target different groups of people, perhaps with different genders or age groups from your normal customers.Analysis using BCG Matrix In the landing field of product produce large amounts of cash, but the future growth prospects are limited. This is a leader of mature market, it is the source of enterprise cash. As the market has matured, the enterprise need not a lot of investiture to expand the size of the market, at the same time as the market leader, this business enjoy economies of scale and high marginal profit advantages, thus brings to the enterprise to large amounts of cash flow. Enterprise oft en uses cash cows business to pay for the account8and support other business that need a large amount of cash. Cash cows for the business strategic framework mentioned stable strategy, purpose is tokeep the market share of the SBUs.Option (Diversification) Diversification involves growing the scope of products or markets served by an organization. Related diversification involves diversifying into products or services with relationships to the existing business.Analysis using Generic Strategies A differentiation strategy for SABMiller products and competitors products that have significant differences to form the distinctive characteristics. SABMiller highlights the differences between its own products and competitors.Analysis using Ansoffs Matrix Diversification can be a good choice, for SABMiller, but compared to other options, it is not very attractive. In fact, SABMiller is a publicly traded company that can manage their own portfolio harder for real portfolio management as a s hareholder. It can work in favor of the SABMiller manufacturer, if you can add enterprise, the portfolio can support and complement its core beer business.Analysis using BCG Matrix Diversification is to reduce the risk of investment, but it also has risk. So we should use question marks to analysis these diversified investment, a good investment can make products become to stars or cash cows but a bad investment can also mean that the investment is fail. If 9SABMiller produce a new beer, it should analysis whether this beer can occupy the market share and have high growth.1.4 RecommendationAbove those three strategic options, I will recommend market development to SABMiller. SABMiller achieved great success in South Africa market, but to the world, the biggest market is China. Chinese customers consume forty-five million septet hundred and sixty thousand tons beer each year. If SABMiller can choose a correct market development strategy in China, it will get a greater development.1. 5 ConclusionThe key point to SABMillers success is its management of strategic brand and its brand portfolio. But in the future, it has to face more gainsay and competitive. SO SABMiller should continue improving its strategy, developinginnovation and technology.