A Strategic Analysis of the Brewing Industry in Nigeria Essay

However, Competition in the Nigerian beer market is getting fiercer as environmental and economic conditions affect the disposable income of the consumer. Growths in this industry in recent times have been achieved through innovation, market share increase and exploration of new frontiers through exports.

With so few options for growth, companies that operate in the industry are under considerable pressure to deliver to their shareholders. Consequently, they must streamline their processes in order to drive real, profitable growth, while ensuring that they effectively meet the demands of both customers and consumers.

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Guinness Nigeria Plc, the second largest player (by Volume) in the brewery industry in Nigeria has experienced significant growth in recent years in spite of the harsh terrain.

This is attributable to the strategy it adopted in addressing the challenges posed by the environment. Their strategy is to continue to leverage on its existing competitive advantages it enjoys with its Stout brand where it has a virtual dominance of the market, promoting and growing all its other brands, while diversifying its product base to cut across all classes, tastes and geographic regions.

This is manifested in their efforts at; ·Maintaining Cost leadership ·Enhancing Price stabilisation Driving for excellence in product quality and ·Striving to attain exceptional operational efficiencies. The future of the beer market is however more complex. This is as a result of, ·The increasing complexities associated with distribution systems, ·Demographics and changing lifestyles, including an increasingly health conscious population, ·Fierce competition in the market place, ·The increasing powers of the distributors and retailers, who can choose to sell only products that gives them maximum profit.

The key to managing these challenges, and ultimately to driving profitable growth, lies in adopting and implementing effective strategies and supporting them with a flexible, integrated information system capable of meeting the distinct, and constantly evolving, needs of the beer industry. Guinness Nigeria Plc has built some of these challenges into its strategy, and has also recently acquired the SAP business solution software, that will provide the platform to drive the resolution of some of the key issues outlined above.

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