Pre-acquisition history[ edit ] The origins of the company date back to the foundation of South African Breweries in in South Africa. For many decades, the operations of South African Breweries were mainly limited to southern Africa, where it had established a dominant position in the market during South African Apartheid, until when it began investing in Europe.
Whilst some of this success has been documented, the author found no evidence of the application of internationalisation theory to South African firms, whilst other emerging market research has yielded results that challenged early theoretical underpinnings and added value to a further understanding of internationalisation behaviour and motivation.
A great part of their success has been attributed to the culture and history of the organisation within its home market. Their motivations, enablers and modes of entry employed were further compared to extant literature in order to determine which, if any, theories are best suited to describe their process of internationalisation.
This research report made use of a holistic, single, qualitative case study of SABMiller.
Data were then examined using thematic analysis and compared to theories posited in literature on the subject. It was found that whilst extant literature on internationalisation provides useful, broad frameworks within which to analyse the paths followed by an organisation, a more holistic regard of the body of literature is recommended, particularly in analysing emerging-market multi-national enterprises EM MNE whose history and culture play a significant role in determining internationalisation behaviour.
As the company grew, their motivations expanded to a portfolio consideration of balancing risk and currency exposure in emerging markets, with more stable profit pool participation in developed markets.
In entering new markets, SABMiller utilised a beachhead approach whereby their main aim was to secure entry to a desired market from which they would be able to expand further — through either organic market share gain, increased ownership of their joint ventures, or further acquisitions within the market.
Firms engaging in foreign expansion for the first time need to understand clearly their relative advantages, to what they owe that endowment, and to what extent those advantages are sustainable in the face of global competition.
Furthermore, locational advantages of a target country must be viewed relative to the competitive advantages they possess within the context of their product class, industry structure, nature of the knowledge to be transferred, and where the value generation lies within their structure.
Investment into local communities and alignment to priorities of social development and environmental preservation are becoming increasingly important and internationalising firms need to factor this into consideration in order to increase their chances of success. The significant impact of governments on internationalisation is highlighted in the literature and is particularly evident in the case of SABMiller.
With the added importance of investment towards societal goals, a study of the motivators and priorities of host governments may add value to firms in partnering effectively when internationalising, particularly within the realm of value chain development.Internationalization strategy at SABMiller.
In the year , SABMiller undertook a globalization strategy and started entering the international markets. Sab Miller Strategy Presentation 1. Consumer Analyst Group of New York SABMiller plc Alan Clark Gary Leibowitz Chief Executive SVP Investor Relations 18 February The significant impact of governments on internationalisation is highlighted in the literature and is particularly evident in the case of SABMiller.
With the added importance of investment towards societal goals, a study of the motivators and priorities of host governments may add value to firms in partnering effectively when internationalising.
companies’ internationalisation strategy into emerging markets and the reasons for entering these markets where institutional voids exist.
It uses a case-based analysis based on SABMiller’s entry. South African Breweries (SAB), is a subsidiary of SAB Miller plc, and contributes 22% EBITDA to the group.
Its primary business is the brewing and bottling of beer for domestic and global consumption. SABMiller plc. was a multinational brewing and beverage company headquartered in Woking, England on the outskirts of London until 10 October when it was acquired by Anheuser-Busch benjaminpohle.com to that date, it was the world's second-largest brewer measured by revenues (after Anheuser-Busch InBev) and was also a major bottler of Coca-Cola.
Its brands included Fosters, Miller, and Pilsner.