Strategic Management: SAB Miller SAB Term Paper

Excerpt from Term Paper :

In this sense, one could consider launching several new brands, specifically adapted to the South African market, created especially for it.

Second of all, in the markets where SAB is a challenger, the main strategic objective is the increase of the company's market share. The current activity in this sense, with the acquisition of several important brands, seems to have delivered the expected results. As a pointer, it is advisable that the capacities in Central and South Eastern Europe be efficiently used, as these can provide significant scale economies for the company, given the lower overall production costs available in the countries. SAB has already purchased local brands in Romania, Poland, Hungary or the Czech Republic, but, considering the particular efficiency of each of these local brands, the operating capacities can also be used to produce original SAB brands (although in this case, one needs to consider the European market's absorption capacity for foreign brands).

In my opinion, one of the most important components in the company's strategy for the future is represented by the emerging markets, India and China. The main reason for this is the fact that the markets where SAB has a challenger position are, more or less, consolidated markets, markets where positions are less likely to change. The emerging markets, on the other hand, provide excellent opportunities as unexplored markets, markets where competition is still at an incipient level. The Indian market, for example, is a market where SAB already has a market share of 33%, again through the acquisition methodology it has been using so far. A consistent strategic option to develop presence in the emerging markets should include considering to invest in other countries of the region, countries with striving economies, like Thailand or Malaysia.

Bibliography

1. 2005. SAB Miller plc -Annual Report 2004. Page 2. On the Internet at http://www.sabmiller.com/SABMiller/Financial+centre/Reports+and+results/Annual+reports+archive/

2. September 2003. Budweiser back in South Africa. SouthAfrica.info reporter. On the Internet at http://www.southafrica.info/doing_business/sa_trade/importing/budweiser.htm

http://www.sabmiller.com/SABMiller

4. May 2002. South African Breweries buys Miller. On the Internet at http://www.realbeer.com/news/articles/news-001720.php

2005. SAB Miller plc -Annual Report 2004. Page 2. On the Internet at http://www.sabmiller.com/SABMiller/Financial+centre/Reports+and+results/Annual+reports+archive/

Ibid

September 2003. Budweiser back in South Africa. SouthAfrica.info reporter. On the Internet at http://www.southafrica.info/doing_business/sa_trade/importing/budweiser.htm

Ibid

Sources Used in Document:

Bibliography

1. 2005. SAB Miller plc -Annual Report 2004. Page 2. On the Internet at http://www.sabmiller.com/SABMiller/Financial+centre/Reports+and+results/Annual+reports+archive/" target="_blank">http://www.sabmiller.com/SABMiller/Financial+centre/Reports+and+results/Annual+reports+archive/

2. September 2003. Budweiser back in South Africa. SouthAfrica.info reporter. On the Internet at http://www.southafrica.info/doing_business/sa_trade/importing/budweiser.htm

http://www.sabmiller.com/SABMiller

4. May 2002. South African Breweries buys Miller. On the Internet at http://www.realbeer.com/news/articles/news-001720.php

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