Presentation Business-level and corporate-level strategy analysis Sabeco
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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
2
1. SWOT summary
O&T
OPPORTUNITIES
THREATS
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•
•
•
•
•
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
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S&T
STRENGTHS
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•
•
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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
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2. 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 như 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
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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 do 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)
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3. CORPORATE-LEVEL STRATEGIES
Sabeco Business Portfolio: Beer
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Sabeco Business Portfolio: Alcoholic drinks
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Sabeco Business Portfolio: Alcoholic drinks
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Sabeco Business Portfolio: Non-alcoholic drinks
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Type Of Diversification
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Level of diversification: MODERATE
Relatedness:
•
Resources: water; fermented ingredients (rice, yeasts,
barley,...)...
•
Production process: fermentation process
•
Technology
•
Distribution channel
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Same customer base
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Key values and risks from diversification
Values
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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
4. RECOMMENDATIONS
What strategies should the firm take in the future ?
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•
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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?
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