Recommendations of Sabmiller Vs Anheuser-Busch The Takeover Battle For Harbin Brewery Case Help

Home >> Ibs Center For Management Research >> Sabmiller Vs Anheuser-Busch The Takeover Battle For Harbin Brewery >> Recommendations

Recommendations of Sabmiller Vs Anheuser-Busch The Takeover Battle For Harbin Brewery Case Study Solution

On the basis of above internal and external analysis of the company in addition to the examination of different options, the company is advised to consider alternative 3. As alternative 3 would allow the company to broaden in global markets without any reduction in its regional incomes and any wear and tear of its market position. By considering Alternative 3, the business could maintain its shop experience and brand name individuality. It might also think about alternative 2 that could permit the company to access the markets without any possible financial investment. The company could pursue alternative 1 which would enable the company to focus on prospective global markets rather than the local markets however as the company is highly reliant on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the substantial decline in business's revenue. The business is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Sabmiller Vs Anheuser-Busch The Takeover Battle For Harbin Brewery Case Help Stores

Expansion towards worldwide markets through opening new shops in other Europe and Asian countries with closing domestic stores is although a good option for increasing the global presence of the company. The closing of domestic stores could highly affect the profits of the company as above 90% of its stores are situated locally and closing those stores would ultimately minimize the profits of the firm. Additionally, the business has a long term market position in US which can not be generated quickly in the new markets. The alternative would assist the company to broaden in international markets together with the elimination of concerns raised in its local markets related to its diversity. The pros and Cons for Alternative 1 are listed below;

Pros:

• Expedition of new global markets.
• Increase in profits from international markets.
• Removal of issues related to variety.
• Earnings diversity.
• Step towards being a strong international brand.

Cons:

• Loss of comprehensive incomes from the local markets.
• Boost in competitors.
• Distinctions in cultures might resulted in a failure of the brand name particularly in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Sabmiller Vs Anheuser-Busch The Takeover Battle For Harbin Brewery Case Help Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might posture an extreme threat to the market share of company. In this situation the business might consider introducing Click and Recommendations of Sabmiller Vs Anheuser-Busch The Takeover Battle For Harbin Brewery Case Analysis stores. These stores with a low requirement of funds to settle would enable the business to reach worldwide markets, without ending its domestic stores.

Pros:

• Low financial investment
• Decreasing competitors risk
• Access to the world markets
• Enlarging customer base
• Easy to handle
• Large Earnings
• Low Operating Costs
• Easy new market entryway

Cons:

• Risk to the market position
• Elimination of brand name Uniqueness
• Elimination of the excellent shop experience.
• Threat of decrease in elite sales.

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

Another option that the business might consider, is to expand towards the global markets without closing its domestic stores that adds to the major part of revenues of the company. The pros and cons connected to Alternative 3 are provided below;

Pros:

• Minimizing competitors danger
• Access to the world markets
• Enlarging customer base
• Large Incomes
• Expedition of new worldwide markets.
• Increase in revenue from global markets.
• Earnings diversification.
• Action towards being a strong global brand name.

Cons:

• Extension of concerns related to diversity.
• Distinctions in cultures could led to a failure of the brand especially in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenses to gain market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.