Company Strategy: SABMiller plc has a clear business strategy is focus on the following key priorities: The Groups

business strategy is based upon the following key priorities : Business as a balanced and attractive global spread: Creating a balanced and attractive global spread of businesses: SABMiller plc has a business portfolio with investment in the market geographically balanced development is in various stages. This portfolio of new development proposals in the form of long term, this new portfolio offered in the form of long term development, market development, while profitable, generate ready cash market. The Group`s business portfolio when opportunities for improving affordable prices will appear to be involved. The Group has a business portfolio that is balanced geographically with exposure to markets at different stages of development. This portfolio offers long-term growth in the form of new, developing markets while generating cash from protable, developed markets. The Group will look to add to its portfolio of businesses when suitable value-enhancing opportunities occur. Local market strong, relevant brand portfolios Development Developing strong, relevant brand portfolios in the local market:

By understanding the type of trends and priorities within each market, Group`s attractive brand that different departments on a range of opportunities and meet the need of user who appeal to their particular tastes continue to evolve. The teem will also see support from both his position as a premium brand such as Cusquen a in peru and Peroni Nastro Azzurro, Pilsner Urquell, Grolsch and MGD portfolio by leveraging rapidly growing, higher margin international premium determine lager section. By understanding the trends and preferences within each market, the Group continues to develop attractive brand portfolios that meet consumer needs on a range of different occasions and which appeal to their specic tastes. The Group will also look to both support its local premium brands such as Cusquena in Peru and to assess the fast-growing, higher margin international premium lager segment by leveraging its portfolio of Peroni Nastro Azzurro, Pilsner Urquell, Grolsch and MGD. Constantly raising the performance of local businesses: Constantly raising the performance of local businesses:

Performance of local operations to be enhanced

To keep raising the performance of local operations

Their strong team focus on improving operational performance will to in his business by continuously upgrade its operational standards, the management team ahead of the rest of the industry will allow for keeping believes. The Group will continue to focus on improving its strong operational performance across its businesses through continually raising its operational standards, which Management believes will allow the Group to keep ahead of the rest of the industry. Leveraging the Groups global scale:

To gain maximum value from its global scale

The team applying best practices from the global maximum value of portfolio Origin will continue to focus on and internal management and production techniques to each of the group`s operations. Thus far their best potential benefits of each operation, resources and overall team experience. The Group will continue to focus on extracting maximum value from its global portfolio by applying best practices and internal management and production techniques to each of the Groups operations. In this way, each operation benets to the fullest extent from the skills, resources and experience of the Group as a whole.

Strategy: Diageo strategy that international trade is to move through organic sale and acquisition premium drink brands.The few international premium drinks companies that operate across spirits, wine and beer and utilize its size to give cost savings to customers.

Diageos strategy is to grow its business internationally through organic sales and the acquisition of premium drinks brands. It is one of the few international premium drinks companies that operate across spirits, wine and beer and uses its size to provide cost savings to customers. Diageo has placed the following five values at the heart of its business: Diageo in the heart of his business has the following five values: 1. We are passionate about consumers our interest and customer insights drive our enlargement.

2. We cherish our brands; we are creative and courageous in pursuing their full potential. We are innovative, constantly searching for new ideas. 2.We brought our brands, we seek their full potential are creative and courageous. We are new, constantly looking for new ideas.

3. We value each other we seek and benefit from diverse people and perspectives. We strive to create mutually fulfilling relationships and partnerships. 3. We value each other - we approach different types of people and want to benefit from. We have full relations with each other and strive to create partnerships.

4. We give ourselves the freedom to succeed we trust each other, we are open and seek challenge, and we respond quickly to the opportunities this creates. 4. We provide ourselves the liberty to succeed we belief each other, we are unbolt and look for challenge, and we quickly react to the opportunities this creates. 5. We are proud of what we do and how we do it we behave responsibly with the highest standards of integrity. 5. we are proud of what we do and how we do it - we the highest standards of integrity to behave with responsibility 6. We strive to be the best we are always learning, always improving. We set high standards, we stretch to exceed them and we celebrate success. 6. We try to be the best - we always, always improving learning. To set a high standard, we flung them to cross and we celebrate success

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Threat of Competition Moderate

Diageo plc is a large market share in the world in spirits sales .With operates in 180 markets worldwide. Therefore, Diageo is facing competition. However, there is an intense competition within the wine industry for brand recognition and awareness. The best way to achieve competitive advantage by brand awareness through marketing. There is also a great treat of competition in the industry, but not over control or interfering with Diageo plc growth strategies.
Threat of New Entrants Low

For big beer companies, the threat of new entrants is low. At the same time as there are hundreds of small breweries all over the world, brand equity and market existence require funds intensive oriented marketing campaigns to achieve, and thus it is difficult for microbreweries to compete big beer companies.The large companies with broad access and they have also advantages economy of scale, Forward mixing in the value chain allows big companies to have cost benefits over microbreweries. Start-up a new beer industry also requires millions of capital. All of these things contribute to what has to be classified as a low threat new entrants industry.
Threat of Substitutes Moderate For Diageo plc the threat of substitutes is moderate because for customer there are so many choices of substitute beverages. While, the Diageo more revenue comes from spirit shows that other alcoholic beverages, particularly once lesser on the price scale, could be substitute. Similarly,21% of Diageo revenue from beer. If customers testes and preferences changes over in favour of beer. Diageo a significant reduction in income can still participate, although the current market trends and priority would show this to be an unlikely situation so, keep this threat at a moderate level. Power of Suppliers Low

The production of wines and spirits come from the agriculture products such as barley, wheat, grain, etc these agriculture commodities are easily replaceable. These big companies buy more when agriculture price low and buy less when price high. That mean the power of supplier is low.

Power of Buyers Moderate

Overall demand for alcoholic beverage products is mostly a staple and fairly inelastic relative to its price. The power of buyers to set prices is low and manufacturer such as Diageo definitely have pricing power. However, if prices increase in one beverage type (beer, wine, spirits), it would not be strange to see customers change their preference to a less costly alcoholic beverage group. Due to the fact buyers also have some power that there are low switching costs for them. Company have to keep their clients happy with the product they receive, if not they will purchase other product.