Sabmiller Case Study Example | Topics and Well Written Essays - 3000 words

Sabmiller - Case Study ExampleFrom the above tabular form, it is spare that more than pursuing organic growth, SAB Miller has concentrated on consolidation and expansion the latter achieved through acquisitions and strategic alliances.Porters five forces model helps in analysing the forces or aspects that influence an industry. This analysis, however, is relevant for a particular industry and not in assessing the performance at the company level. This model thus helps in studying the effects of the external factors that drive a companys performance and output in terms of the other elements operating in the same industry. The five forces constituting the model - competitive rivalry, little terror of new entry, bargaining power of suppliers, bargaining power of buyers and threat of substitutes. All these forces ultimately affect the profitability of the company. However, these forces that affect the profitability of a company instal up the business environment of any organization a nd are beyond the sphere of influence of the companys control. So, it is important for the company to develop and adopt tactics to rubbish these competitive forces and keep a tab on them to foresee the upcoming trends and accordingly brace themselves with suitable strategies. Following are the forces described individually. (Ehmke C. et al, September 2004)militant Rivalry- The main competitor of SAB Miller was Anheuser-Busch.