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

Sabeco

Group 8

Phan Thị Minh Châm

Lê Nguyễn Hàn Anh

Trần Bình Minh

Lê Đức Thành

Vũ Hoàng Mai

Table Of Contents

1/ Summary of SWOT

2/ Business-level strategy analysis

3/ Corporate-level strategy analysis

4/ Recommendations

2

1 SWOT summary

• 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

4

• Extensive distribution network

• Quality product line

• Significant production

capacity

• High expenditure on

marketing

• Dependence on imported materials

• Lack of impressive marketing campaign on digital platforms

• Unattractive packaging

• Difficulties in maintaining qualities across breweries 5

2 BUSINESS-LEVEL STRATEGIES

Differentiation strategy : focus on the affordability of

middle level segment

7

Operation

Purchasing machines from top brand able of producing beers with European quality

Finance

Invest

heavily on

R&D,

constantly

applied

new

technology

HR 

Hiring qualified employees (brewing specialists in Germany and America,

conduct oversea training programs for workers

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

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)

8

3 CORPORATE-LEVEL STRATEGIES

Sabeco Business Portfolio: Beer

Sabeco Business Portfolio: Alcoholic drinks

Sabeco Business Portfolio: Alcoholic drinks

Sabeco Business Portfolio: Non-alcoholic drinks

Type Of Diversification

14

Ø Level of diversification: MODERATE

Ø Relatedness:

• Resources: water; fermented ingredients (rice, yeasts,

barley, )

• Production process: fermentation process

• Technology

• Distribution channel

• Same customer base

revenue

Key values and risks from diversification

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 ?

17

facilitate the sustainable growth of the main product line – beer

fierce competition and focus on the development of beer products

increase its engagement

social media channels to engage with customer better and increase

brand awareness

succeeded in the middle level segment differentiation

THANKS!

Any questions?