The paper 'SABMiller - the Rivalry between Existing Sellers" is a perfect example of a business case study. SABMiller is a South African company that has been producing beer since 1985. This company has a long history which “ reflects the economic and social growth of the company” . (SAB Website, 2010) Since its operation from 1985, it has “ become the largest brewery and is having its presence all around the globe” . (SAB Website, 2010) The company is a major beer producer. It has been “ listed in the Johannesburg Stock Exchange since 1987” .
(SAB Website, 2010) The company achieved this feat by becoming “ the first industrial company to achieve it” . (SAB Website, 2010) After this, it found a place on the London Stock Exchange in 1988. With the vision, SABMiller “ simulated the barley industry by ensuring that they got crops at lower prices and for this, they supplied seeds to the farmers free” . (SAB Website, 2010) This turned the fortunes. SABMiller was able to enter into a partnership with Ohlsson’ s breweries. They used this framework and continued with this strategy. The company by continuing similarly “ acquired stake in Schweppes in 1925” .
(SAB Website, 2010) This decision proved sound. It helped them to move ahead. Slowly with the passage of time SAB in 1950 moved its headquarters to London. Since then the company started to move ahead by entering into areas that were not its core competency. The company by that time had become renowned in the beer industry. The company moved ahead and “ opened the Southern Sun Hotels in 1969” . (SAB Website, 2010) This was a joint venture and ensured that SABMiller moved into other avenues. The competition was slowly intensifying.
In 1972, SABMiller faced competition from Luyt Breweries. This fight among this company continued for years. This helped both as more and more people started to know about the beer industry. Eventually, SABMiller continues with its “ strategy of acquisition and acquired the company in 1979, thereby giving them a 99% share in the market” . (SAB Website, 2010) SAB continued in the same manner. It grew both its core and non-core business. The formation of the democratic government in 1994 changed the complexion. SAB Miller started to hive off its non-core business.
It started concentrating on beer. This helped SABMiller to move globally. This gave them an opportunity to tap into various countries. The vanishing of borders also helped SABMiller to move ahead. The company then “ acquired Miller Brewing Company in the USA in 2002 and converted itself to SABMiller Plc” . (SAB Website, 2010) This strategy helped the company. They were able to move into Europe, South America, India, Vietnam, and China. This process continued and slowly SABMiller became the second largest brewery Today “ SABMiller has a presence in over 60 countries and over 50,000 employees” .
(SABMiller, 2010) The company has outlets all around. The development of breweries and more employment worldwide has helped them. The company looks forward to seeing itself as a leader and then come with new innovations. This has helped the company to have more than 200 brands. Some of the brands are “ Castle Lager, Grolsch, Miller, and Peroni” . (SABMiller Plc, 2010) In addition to this, the company has more than 100 breweries. The company with such a strong presence is bound to grow. Porter’ s Five Model Analysis will help to find out how the industry and a firm get affected due to factors beyond their control.
These are factors which are external to the organization.
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