Sab Strat
Introduction
The aim of this assignment is to conduct an analysis of a SAB case study and to identify 10 strategic issues from this case study.
Strategic analysis of the SAB case study
The following information will be gathered to analyse 10 strategic issues in the above mentioned case study: Market size | * Current and future | Growth rate | * Focus on product life cycle | Market profitability | * Porters 5 forces | Industry cost structure | * Porters value chain model | Distribution channels | * Existing distribution channels * Trends & emerging channels * Channel power structure | Market trends | * Source of opportunities and threats | Key success factors | * Access to essential unique resources * Ability to achieve economies of scale * Access to distribution channels * Technological progress |
Market size
According to the South African Breweries website the South African Breweries Limited (SAB) is a holding company whose principal line of business is brewing. The company holds 98 percent share of the beer market in South Africa, where it sells 14 brands of beer, including local lagers Castle and Lion as well as foreign brands brewed under license--Heineken, Guinness, Amstel, and Carling Black Label. Aggressive overseas expansion following the end of apartheid has also given SAB ownership of, or stakes in, more than 25 breweries in the emerging markets of central Europe, China, and sub-Saharan Africa. Overall, in terms of volume, South African Breweries is the world 's fourth largest brewer. SAB also has a variety of non brewing operations, such as carbonated and natural fruit drinks and other beverages, retailing, hotels and gaming, and manufacturing of safety matches and glass. The company has been divesting many of these noncore assets in the late 1990s. SAB 's history is in many ways the history of the South African brewing industry, most notably through the government-ordered merger of the largest
The aim of this assignment is to conduct an analysis of a SAB case study and to identify 10 strategic issues from this case study.
Strategic analysis of the SAB case study
The following information will be gathered to analyse 10 strategic issues in the above mentioned case study: Market size | * Current and future | Growth rate | * Focus on product life cycle | Market profitability | * Porters 5 forces | Industry cost structure | * Porters value chain model | Distribution channels | * Existing distribution channels * Trends & emerging channels * Channel power structure | Market trends | * Source of opportunities and threats | Key success factors | * Access to essential unique resources * Ability to achieve economies of scale * Access to distribution channels * Technological progress |
Market size
According to the South African Breweries website the South African Breweries Limited (SAB) is a holding company whose principal line of business is brewing. The company holds 98 percent share of the beer market in South Africa, where it sells 14 brands of beer, including local lagers Castle and Lion as well as foreign brands brewed under license--Heineken, Guinness, Amstel, and Carling Black Label. Aggressive overseas expansion following the end of apartheid has also given SAB ownership of, or stakes in, more than 25 breweries in the emerging markets of central Europe, China, and sub-Saharan Africa. Overall, in terms of volume, South African Breweries is the world 's fourth largest brewer. SAB also has a variety of non brewing operations, such as carbonated and natural fruit drinks and other beverages, retailing, hotels and gaming, and manufacturing of safety matches and glass. The company has been divesting many of these noncore assets in the late 1990s. SAB 's history is in many ways the history of the South African brewing industry, most notably through the government-ordered merger of the largest
Bibliography: Philip Kotler, 2009. The Economist. [Online] Available at: http://www.economist.com/node/14301365 [Accessed 01 October 2012]. QuickMBA.com, 2012. QuickMBA.com Strategic Management. [Online] Available at: http://www.quickmba.com/strategy/porter.shtml [Accessed 01 October 2012]. South African Breweries Limited, 2012. Company History. South Africa: s.n.