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

Sabmiller - Case Study Example From the above tabular form, it is apparent that more than pursuing organic growth, SAB Miller has concentrated on consolidation and expansion; the latter achieved through acquisitions and strategic alliances. Porter's 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 company's performance and output in terms of the other elements operating in the same industry. The five forces constituting the model - competitive rivalry, threat 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 make up the business environment of any organization and are beyond the sphere of influence of the company's control. So, it is important for the company to develop and adopt tactics to combat these competitive forces and keep a tab on them to foresee the upcoming trends and accordingly brace thems elves with suitable strategies. Following are the forces described individually. (Ehmke C. et al, September 2004) Competitive Rivalry- The main competitor of SAB Miller was Anheuser-Busch.