Recommendations of Sabmiller: The Battle For Latin America Case Analysis

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Recommendations of Sabmiller: The Battle For Latin America Case Study Solution

RecommendationsOn the basis of above internal and external analysis of the company along with the evaluation of numerous alternatives, the business is suggested to consider alternative 3. As alternative 3 would permit the company to broaden in international markets without any reduction in its local profits and any deterioration of its market position. The company might pursue alternative 1 which would allow the company to focus on possible worldwide markets rather than the local markets but as the company is extremely reliant on the regional markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the considerable decrease in business's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Sabmiller: The Battle For Latin America Case Solution Stores

International SegmentsThe business has a long term market position in US which can not be created soon in the new markets. The choice would assist the business to expand in global markets along with the elimination of issues raised in its regional markets related to its diversity.

Pros:

• Expedition of brand-new international markets.
• Increase in profits from worldwide markets.
• Removal of concerns connected to variety.
• Income diversity.
• Action towards being a strong international brand name.

Cons:

• Loss of comprehensive revenues from the regional markets.
• Increase in competitors.
• Differences in cultures might caused a failure of the brand specifically in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Sabmiller: The Battle For Latin America Case Help Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might present an extreme risk to the market share of business. In this scenario the business could think about introducing Click and Recommendations of Sabmiller: The Battle For Latin America Case Solution shops. These shops with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic shops.

Pros:

• Low investment
• Decreasing competition danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Revenues
• Low Operating Costs
• Easy new market entryway

Cons:

• Risk to the market position
• Elimination of brand name Uniqueness
• Removal of the great store experience.
• Risk of decrease in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another choice that the company might consider, is to expand towards the worldwide markets without closing its domestic stores that contributes to the major part of revenues of the company. The pros and cons associated with Alternative 3 are given listed below;

Pros:

• Lowering competition hazard
• Access to the world markets
• Increasing the size of customer base
• Big Incomes
• Exploration of new global markets.
• Boost in profits from global markets.
• Earnings diversification.
• Step towards being a strong international brand.

Cons:

• Continuation of issues related to diversity.
• Distinctions in cultures could resulted in a failure of the brand specifically in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenditures to get market share.



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