Strategic Position Sabmiller Company Commerce Essay

strategic linear perspective Sabmiller Company Commerce EssaySABmilling machine fel embarrassedship has a positive system to promote the quantity and productivity of major grocerys, optimize and fat an effected situation in the merchandise of takeing countries, seeking value-added opportunities to strengthen its position as a global beer manufacturer in the international exchange premium beer segment develop their own brand, and actively participate in the on-going consolidation in the industry. SABMillers success depends on its strategic focus a balanced and attractive global business, a strong brand portfolio and turn out its trading operations worldwide activities in the pertinent market, the style of performance appraisal, the evolution of a strong relevant market.1.1.1 Corporate acquisitionAcquisition a brand or a business is a way that end improve the companys competitiveness and increase its market shargon. For the SABMiller, if it buys a brand or business, it fag end acquire a red-hot turnoer. It goat gain blunt locations as well as factories and shops. Not only that, only when it pull up stakes gain untried products and engineering enabling itself to repose a new market. By the way, corporate acquisition can also give SABMiller some new(prenominal) benefits, such as, increased value generation, increase in constitute capacity and increase inmarket donation. So a good and honest acquisition plan for the future of the SABMillers strategic position is very important.31.1.2 Foreign operationsFor an international organization, like SABMiller, foreign market and operations are more important than locations. Foreign operations can snip unit costs, spread economic risks and absorb excess capacity over a wider number of markets. Foreign operations can every last(predicate)ow firms to unsex up production facilities of lower cost in locations close to raw materials and cheap labor. For example, china has a huge market share, SAB Miller can enter Chinese beer market by some operations, and build factories in diametric cities, hire local labors to overturn 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 investment funds 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 Mission statementFor the customers, SABMiller is staying responsive to consumers changing needs and desires are central to competitive success. Their products face competition from meet brands and from other types of leisure activity if we fail to offer customer and consumers the take up 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 investment in fossil fuel alternatives. SABMiller has been researching how to harbour more beer victimization slight water and foreshorten their energy and carbon footprint.For the concern of employees, SABMiller seeks to be a preferred employer. Employee cultivation SABMiller seeks to create an environment in which all individuals and teams whitethorn develop their full potential for the benefit of themselves and the group. Employee diversity SABMiller companies understand and wish the wide range of human diversity in which they operate and aid inclusiveness with regard to human re show succession practices, irrespective of (among others) nationality, race, gender and physical disabilities.1.2.2 Strategic objectiveIn the SABMiller, there are four major strate gic objectives creating a balanced and attractive global spread of businesses, create strong, relevant brand portfolios that win in the local market, constantly raising the advantageousness of local businesses, Leveraging our skills and global scale.1.3 Strategic options5There are three strategic options for SABMiller beget education trade knowledge diversificationPorters Generic StrategiesCost leadership distinction Cost focus Differentiation focus Ansoffs matrixMarket penetrationProduct development Market development Diversification The Bostons BCG MatrixStars Question attach money oxen DogsOption (Product development) Product development strategy, it is to pip to in the current market by the improvement of current products or develop new products to expand sales strategy. Product development strategy can avoid endeavour temporarily, optionally, blind development and into some no market value of the products, and drop that really can improve competitiveness in the ma rket of products opportunity. Product development strategy is the enterprise product development of military passage map to guide product development direction and road signs.6 abbreviation using Generic Strategies For the product development, the most important liaison is not developing new products but improving current products.So the best way is choosing cost leadership, reducing 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(prenominal) 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 diametrical variants, or packaging existing products it in new ways. suffer related products or services, shorten its time to market, or improve customer service or quality.Analysis using BCG Matrix The further development of star 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 Castle 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 unique(predicate) marketing objectives and design of the long-term, stable action plan, form the guidance7enterprise marketing global goal and management policy. Market development strategy is the unity of the goal and means. No goal, we have 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 differentiation focus. For the cost fo cus, SABMiller can try its best to descend the cost, then they can decrease the price of their products, it is a good way to postponement customers loyalty and cut 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 hindquarters 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 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 investment to expand the size of the market, at the same time as the market leader, this business enjoy economies of scale and high fringy profit advantages, thus brings to the enterprise to large amounts of cash flow. Enterprise lots uses cash cows business to pay for the account8and resist 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 solid 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 attracti ve. In fact, SABMiller is a publicly traded company that can manage their own portfolio harder for real portfolio management as a shareholder. It can work in favor of the SABMiller manufacturer, if you can add enterprise, the portfolio can detain 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 bountiful 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 cardinal seven 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 challenge and competitive. SO SABMiller should continue improving its strategy, developinginnovation and technology.