Analysis of Sabmiller’s Strategic Position

1. ANALYSIS OF SABMILLER’S STRATEGIC POSITION

1.1. Introduction

SABMiller is an international company with its main interest the brewing of beer. To understand SABMiller’s strategic position is to consider their strengths and weaknesses against what is happening in the environment (Robson, 1997, p. 29). Annexure A reflects the prioritisation of the basic process of strategic analysis.

1.2. External factors affecting SABMiller

Annexure B contains a P.E.S.T analysis for SABMiller but since environmental factors are country specific it is most effective when performed for all countries of interest.

1.2.1. Political Analysis

Governments across the world take extreme measures to regulate alcohol because it affects the consumer’s mind. The Miller deal exposed SABMiller to one of the highest regulated industries in the world. Re-establishing consumer loyalty towards the Miller brand will be made difficult by factors such as nationalism.

1.2.2. Economical Analysis

Figure 1.1 indicates that the acquisition of Miller ensured a greater balance between a cash-generative mature market and the cash-consuming developing markets. However, ‘negative impact of brand, pack and geographic mix, increased cost of raw materials and greater energy costs make business in the USA difficult’. (SABMiller, 2003, p. 8)

Figure 1.1

(http://www.sabmiller.com)

1.2.3. Social Analysis

SABMiller assess their alcohol issues policy regularly to ensure responsible advertising, packaging, promotions and that the underage is not targeted.

They recognise their social responsibility towards HIV/Aids and provides support and training that focuses on the prevention of the disease.

1.2.4. Technological analysis

“Technological developments affect marketing in two basic ways: with new products and with new processes” (Perreault and McCarthy, 1996, p. 130). SABMiller has an aggressive programme to implement production systems across the world with the optimum level of flexibility.

SYSPRO 6.0, a fully integrated business software solution providing complete control over the planning and management of all facets of business, forms a critical element of SABMiller’s business mode. (SABMiller, 2003, p.19)