Presentation Business-level and corporate-level strategy analysis Sabeco

Presentation Business-level and corporate-level strategy analysis Sabeco present the content: summary of SWOT, business-level strategy analysis, corporate-level strategy analysis, recommendations.

BUSINESS-LEVEL AND CORPORATE-LEVEL STRATEGY ANALYSIS Group 8 Phan Thị Minh Châm Lê Nguyễn Hàn Anh Trần Bình Minh Lê Đức Thành Vũ Hoàng Mai Sabeco Table Of Contents 1/ Summary of SWOT 2/ Business-level strategy analysis 3/ Corporate-level strategy analysis 4/ Recommendations SWOT summary O&T OPPORTUNITIES THREATS • • • • • • Gold population structure Expand of middle class Potential about export market The prospect of new product line The prospect of rural areas • • • • • Stricter laws Supply chain disruption Negative media coverage Taxes Changes in consumers’ behavior Free trade agreement can lead to highly competitive market S&T STRENGTHS • • • • Extensive distribution network Quality product line Significant production capacity High expenditure on marketing WEAKNESSES • Dependence on imported materials • Lack of impressive marketing campaign on digital platforms • Unattractive packaging • Difficulties in maintaining qualities across breweries BUSINESS-LEVEL STRATEGIES Differentiation strategy : focus on the affordability of middle level segment Finance Invest heavily on R&D, constantly applied new technology HR  Hiring qualified employees (brewing specialists in Germany and America, conduct Operation Purchasing machines from top brand able of producing beers with European quality Marketing - Develop a brand image “ Bia Sai Gon” with distinguished motto “Lên Rồng” raise the patriotism of Vietnamese people - Sponsor for well-known sport teams, music events - Conduct promotions to build up Personal relationships: premier member, discount program Why and How ? These business level strategies is appropriate, because: • Sabeco market share is on of the biggest in the market (43%) • The brand have a deep seated image in customer mind (synonymous with patriotism) people is unlikely to change product • Large scale production with high quality (Sabeco produce 1.8 billion liters 30% of total beer production in VietNam) hard to imitate What does the firm need to to improve its business level strategy? Ø Promote other product line of the company as well (other product of the company don’t have as much market share as Saigon beer) CORPORATE-LEVEL STRATEGIES Sabeco Business Portfolio: Beer 10 Sabeco Business Portfolio: Alcoholic drinks 11 Sabeco Business Portfolio: Alcoholic drinks 12 Sabeco Business Portfolio: Non-alcoholic drinks 13 Type Of Diversification Ø Ø Level of diversification: MODERATE Relatedness: • Resources: water; fermented ingredients (rice, yeasts, barley, ) • Production process: fermentation process • Technology • Distribution channel • Same customer base 14 Key values and risks from diversification Values Ø • • Ø • • • Economies of scope Sharing activities Transferring core competencies Market power Increased brand’s awareness Reducing competition Contribution to corporation revenue Risks • • Lack of specialization (in alcoholic and non-alcoholic drinks business) Fierce competition in the substitute product market 15 RECOMMENDATIONS What strategies should the firm take in the future ? • • • • • Expand, upgrade customer line, supplier line and distribution channels to facilitate the sustainable growth of the main product line – beer Reducing the manufacturing level of substitute products to avoid risks of fierce competition and focus on the development of beer products Offering free trials of your existing products to your target audience to increase its engagement Enforce online customer service platforms and consider establishing social media channels to engage with customer better and increase brand awareness Considering aiming towards higher-level segment after having succeeded in the middle level segment differentiation 17 THANKS! Any questions? 18 ... of SWOT 2/ Business-level strategy analysis 3/ Corporate-level strategy analysis 4/ Recommendations SWOT summary O&T OPPORTUNITIES THREATS • • • • • • Gold population structure Expand of middle... share as Saigon beer) CORPORATE-LEVEL STRATEGIES Sabeco Business Portfolio: Beer 10 Sabeco Business Portfolio: Alcoholic drinks 11 Sabeco Business Portfolio: Alcoholic drinks 12 Sabeco Business Portfolio:... member, discount program Why and How ? These business level strategies is appropriate, because: • Sabeco market share is on of the biggest in the market (43%) • The brand have a deep seated image