Corporate Strategy
...P Rennie
Executive Summary
ABI, the soft drink division of SAB Ltd, is without doubt the largest distributor of Coca Cola products in South Africa. With the acquisition of ABI’s minority shares (24%) by SAB Ltd, we have become part of a global player in the beverage industry. This has highlighted many opportunities and strengths, but also revealed our threats and weaknesses as SAB has now placed additional pressure on us to improve delivery and service. The following report highlights the current competition within the beverage industry in South Africa, using various models to analyse the increasing number of forces which impact on our daily business. Porter’s value chain model also illustrates the value chains within ABI Vaal and the many linkages which exist in the business that create our Competitive Advantage.
Common perception could portray the belief that ABI is a monopoly in South Africa, and that ABI is a hugely successful distributor of Coca Cola brands, however you will come to read that ABI too has growing concerns and needs to constantly re-look its corporate strategy and way forward should it wish to maintain and grow its market share and remain the number one distributor of soft drinks in South Africa.
Contents
1. Introduction 1
2. Analysis of the Environment 5 2.1. Internal (micro) business environment overview 6
2.2. External (macro) business environment overview 7
3. Resource Analysis 12
3.1. Markets and Competition 12
3.2. Customers 12
3.3. Human Resources 13
3.4. Finances 13
3.5. Operational 14
3.6. Information Management...
View Full Essay
