Strategic Management: SAB Miller Strategic Term Paper

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(South African Breweries p l c)

Strategy to be followed

Parts of the possible strategy have been discussed earlier and let us seek justification for the strategies that have been talked about. It is clear that SAB has good operating practices and sales as that has enabled to go beyond its original base through acquisition of breweries in Eastern Europe, Asia and Central America during the last few years and operate them well. Regarding the increased sales in foreign countries, now the company also has Miller Genuine Draft produced by Miller and Pilsner Urquell. Both these brands are now in the Miller distribution system and this is expected to improve sales in United States. Earlier Miller had been loosing market share in United States but now the leadership has been transferred to a large, growing beer company which is ready to compete. All the deals that the company has completed makes it a very large brewer and thus capable to take on competition. (South African breweries buy Miller) Even within the company, the view is positive as mentioned by Malcolm Wyman, the corporate finance and development director in his statement "Certainly, we have already identified some key markets.

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The key developed markets would include markets such as Germany, the United States - which is a very strong market for imported premium beer - and the United Kingdom." (SAB wins Pilsner Urquell auction)

Thus it is clear that any strategy to be followed would have to be in line with the existing thinking of the company as has been discussed in the first part and that cannot be changed. The company has developed over the years in a particular way and found some methods to be useful and they are just trying to continue on it. The other aspect is that the nature of marketing in the world has changed and all brands are international in nature as the nature of media makes it so. The only restrictions are from languages and thus the products will have to be made successful in as wide a range as is possible......

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