Executive Summary Grolsch, a company with a strong history and a highly rated product, has just been purchased by SABMiller. The company is evaluating its global strategy in light of the acquisition and determining how to position and sell its beer going forward. Grolsch has positioned itself well to compete internationally and has leveraged several tools (e.g. the MABA framework, strategic analysis) to effectively expand abroad. However, they must assess whether or not the MABA framework is still useful, what type of international strategy they should pursue (i.e. developed vs. developing markets), and if their adaptation strategies will continue to be an asset in their business development. The initial conclusion, detailed below,
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However, on the dimensions of market participation and primary activities (brewing), the strategy is more global as mostly uniform actions can be taken at a higher level. Strategic focus and competitive moves/responses are shifting to be more global though the need for localized approaches still exists. With the industry consolidation, there is a shift from multi-domestic to global as competitive reactions are handled globally due to the presence of large brands competing across multiple countries. Though the most compelling argument for this industry being global is the supply chain for making and distributing beer being highly global, the selling and brand development of the product needs to be customized for local markets. Due to the mixed nature, Grolsch should pursue a transnational strategy, incorporating elements of both the global and multi-domestic approaches.
Grolsch’s MABA framework
In order to assess the attractiveness of markets, Grolsch has relied on the MABA framework. This is a form of a CAGE framework. The CAGE framework assesses cultural, administrative, geographic and economic differences between the host country and a foreign market. Some of the positives from this are it helps combine market potential with critical indicators of market and commercial success. For example,