1. MBA Class of ’14
MGMT614: Corporate Strategy| Group C
2. MBA Class of ’14
MGMT614: Corporate Strategy| Group C
World's largest producer
of premium drinks (spirits)
Market capitalisation of £47B,
8th-largest company on
London Stock Exchange
Sold in over 180 countries,
80 offices globally
Diverse portfolio of brands,
heritage tracing back to 1608
4. North America
33%Latin America
& Caribbean
13%
Asia-Pacific
15%
Africa, Eastern
Europe & Turkey
20%
Western Europe
19%
to create the
best performing,
most trusted,
most respected
consumer goods company
in the world
TOTAL
NET
SALES
(F13)
9. ENTRANTS
Considerable barriers to entry
Governmental regulations & tariffs
Established players enjoy significant
economies of scope & scale
Limited scope for disruptive
innovations
LOW
10. SUBSTITUTES
MODERATE
Availability of lower-priced
alternatives, low switching costs
Major players also own certain
substitutes for distilled spirits, e.g.
beer, wine
Health concerns may ‘shrink the
pie’ – decrease consumption of all
alcoholic beverages
11. Buyers: wholesalers & end-consumers
May be price sensitive
Reliance on traditional distribution
channels (on & off-trade) for access
to substitutes
MODERATE
12. SUPPLIERS
Sensitive to commodity (raw
materials) price changes
Various sources for raw materials
High cost of forward integration (to
cut out buyers), making it unlikely
LOW
13. RIVALRY
High fixed costs (exit costs),
advertising expenses
Four-firm concentration ratio of
49.8% in North America (2004)
HIGH