Case Study Essay Example | Topics and Well Written Essays - 1000 words - 1

Case Study - Essay ExampleThe company reviewed its its operations in the 2006 when SABMiller had just completed a iii-year thong plan, establishing a platform for future growth. From that report it can be noted that in North America the company had made progress as it had backing to grow while giving better prices to the customers than its competitors in that market place. SABMiller had heavily invested in that market which alterd it succeeds in price cutting without passing on the costs. It had a three year investment strategy which has enabled to remain strong despite tough conditions. From the foregoing, it can be deduced that SABMillers strategy in the North American market is heavy investment which in turn enables it lower prices hence driving out competitors (Hal, 2002). In relation to Europe SABs strategy was to increase its consider and to expand its capacity. This was to be achieved through introduction of new brands and new packaging methods. This strategy has enable d it to increase its share, volume and expand its capacity in various European markets. SABs strategy in most of the countries has been to acquire an initial local stronghold firm to enable it advance into other markets which it had not penetrated before. It has achieved this by getting other brewing businesses in most cases to focus on brand portfolio which gives it a better market position, increases sales and to enjoy economies of scale in turnout and distribution. It seems that SABMiller has shifted its focus to developing countries having already established a substantial presence in the developed countries. It realised that its ability to succeed in developing countries has proved to be of advantage. This was noted in the companys report of 2006. This strategy has to an increase in consumption of soft drinks by consumers in South Africa which in turn has led to increased sales ( Donald , 2008). To meet the demands of changing consumption patterns, SAB has introduced new sal es and distribution systems and enhanced the flexibility of its production facilities. It has licensed more(prenominal) agents has brought more outlets into the mainstream. This means they can now operate more professionally and it can deliver to them direct - which in turn raises the performance of the business. The stakeholders expect that SABs businesses in Africa will continue to grow being helped by broader distribution and a clearer segmentation of SABs brands. The stakeholders also see plenty of opportunity to keep improving efficiency in these relatively underdeveloped countries and see the outlook for Africa as a whole to be encouraging. Possible strategic options open to SAB starting line of all, SAB can penetrate the market with its current products. This can be through heavy advertising or using any other strategy enable existing and potential customers get knowledge of its existing products. With this option, SAB needs to come up with a strategy to enable it increase sales to its current customers by convincing them without change of its original products. SAB can also gain competitors customers by improving the quality of its beer compared to that of its competitors. Since it is cheaper to retain current customers than acquire new ones, hence in this option SAB needs to improve its relationship with its current custo