Lion Nathans Strategy and Position

sociable lion Nathans outline and PositionSWOT ANALYSIS SWOT analysis of social lion Nathan brew reflects its competitive advantage over former(a) brewery companies. This SWOT analysis gives a picture about individual strengths of social lion Nathan, the weaknesses of the fraternity, any opportunities presented for future, and flagellums from opposite create from raw stuff companies. All of these elements argon of specific importance in assessing a companys nerve competencies and developing a plan for future achievements.STRENGTHIn the yr 1999, social lion Nathan was considered to be ace of the world(prenominal) brewery companies with its bea of operations screen three main geographic locations around the world, namely, refreshing Zealand, China, and Australia and now being mostly novel Zealand and Australia. Being its atomic number 18a of operation restricted in the earlier days, this enab direct lion Nathan to attract a huge base of raft and so gave the company a destiny to experiment modern products. lion Nathan now has an excellent broad base portfolio and it offers a wide stretch of alcoholic drinkings. Its massive portfolio is able to satisfy all the demands of its customers. It has captured a prominent dimension of commercialise segment in Australia and New Zealand. It is mainly industrious in the production and tradeing of alcoholic beverages of wine, beer, and spirits in New Zealand and Australia, although its products are sold globally. lion Nathan takes it pride in being a part of Australias and New Zealands most favored brands like like XXXX, Speights, Tooheys, Steinlager, Hahn, social lion Red, Wither Hills, crowd Boags, Bacardi and St Hallett. It is mainly kn give for selling premium beers in these areas. king of beasts Nathans main area of cogitate has ever so remained revolution and decision out new opportunities in order to achieve out harvest. Its innovation has led to increasing consumption among the mas s. Lion Nathans new product XXXX Summer glaring Lager is a low-carb drink which is undoubtedly the lowest-carb beer in the Queensland market. Its new innovation has service of processed the company to top the market in Australia and with the overwhelming response, they attracted oft and much group of customers across the country and its national distribution is above their expectations which is outselling nimbus its competitor. It alike relaunched Italian beer and snatched away the customers of Coca-Cola Amatils Peroni brand. It was a like a dispense with off to the its competitors. Lion Nathan likewise launched a new product Steinlager unclouded which is a smooth flavoured lager which consisted all natural ingredients of New Zealand and was wholly preservative free which was a highly compelling export proffer which is now New Zealands biggest selling classic lager. Even Lion Nathan is current to become the second largest wine distributor after it took over the brands of Pernod-Ricard. It allow sell 12 major brands of Pernod-Ricard.WEAKNESS Lions operations are expressage only to Australia and New Zealand and so its economy is far below expectations as compared to its competitors.OPPORTUNITIES The Asiatic beer market is said to be very strong. It is predicted that China volition occupy one quarter of the beer consumption worldwide. There is a step-down in import tax on foreign made alcohol in China. Consumers in China focus mainly on premium-style beers and so this is an chance for Lion Nathan. China is experiencing a steady growth rise. Also, the Asian beer consumption is expected to grow 5% between 2009 and 2015.THREATS The global beer market has declined to a growth of 0.5% due to the regional differences. Also vehement rivalry in the beer market can take away significant proportion of Lions market grant.PEST ANALYSISPOLITICAL FACTORS The Australian Government has estimate out the alcohol abuse as one of the major worry among youngste rs in the Australian society. It has therefore imposed an itch charge on beer. This charge is imposed according to the alcohol content in the beer. Also, usance duty applies to all imported products. This duty is alike levied according to alcohol content. For beer with alcohol content less than 1.15% the charge is 5%. Industry sources receive now made an assumption that the governments strict charges on beer is likely to birth the price of beer to go high as there is 10% GST levied on the service component. The same thing was repeated in New Zealand. The excise charges on beer were revise in New Zealand due to which the price of beer went up. Lion Nathan experienced a price rise of 4% due to this revised taxation policy.ECONOMIC FACTORS According to the Australian Drug Foundation, the alcohol manufacturers allow no longer be able to advertise or athletic supporter sport within the next 10 years. Also, the alcohol industry has continue to act in bad faith by avoiding its own r ules in areas such advertising to children through sports sponsorship, promoting responsible drinking, etc. This is likely to legal injury the economic background of the company. Advertising wine and spirits on social networking sites will be restricted.SOCIO-CULTURAL FACTORS Beer consumes in Australia tend to follow a romance that low-carb beer services in weight management. About 74% of the Australian population seems to mean this which builds up a strong social background of Lion Nathan. The 2011 rugby Match in New Zealand provides a huge flock of holidaymaker before and during the match with cheers to Lion NathanTECHNOLOGICAL FACTORS Lion Nathan has been always a follower of technology and innovation. It believes in meeting its consumers demands. It has found the new QR economy technology which helps its consumers in selecting the right wine for the right occasion. Each QR regulation is linked with a specific wine, and from each one scan will commit up a mobile-friendl y site replete with information on each wine. Scanners can watch television sets about the wine in question, get video tours of wineries, discover food pairings, read up on harvest and perceptiveness notes and check out reviews.ENVIRONMENTAL FACTORS the companys demand for beer is affected by the climatic conditions. The cool winter led to a decreased demand for beer date the summer boosted the consumption of beer.LEGAL FACTORS In the year 2009, Lion Nathan did register any legal action for anti-competitive behavior or anti-trust or championship practices. Lion Nathan has had never experienced any sort of non-compliance with health and gum elastic measures and regulations. The company has always complied with the laws.CORE RESOURCES AND ITS COMPETENCIES Competitive advantage is the strength of Lion Nathan. The beer brand broad portfolio is the core resource of the company. This portfolio gives the company a chance to outweigh other brewery companies. Also, it is Lion Nathans m ost valuable asset which reflects its performance. Lion Nathan has always remained committed to its brand. It spends most of its revenue by investing in the brand equity of its already existing core brand. It always tries to steal its customers to focus on its core brands as a national focus and encourages them to buy premium products. In Australia, Lion Nathan holds around 75% of group assets and 80% of operating profits. Lion Nathans beer market share is experiencing stability of more than 44% including its most recently acquired Boags brands. In New Zealand, Lion Nathan is countrys lead-in brewer and now considered the second largest wine distributor with its market share of more than 50%. The strategic focus of management is to maximimise the performance of Lion Nathans existing core business which involves increasing the returns from Australias and New Zealands beer business and also maximizing the value in fine wine business. Lion Nathan also aims at grabbing opportunities i n spirits and ready to drink spirits markets and international wine export markets. Lion Nathan is considered to be a policy attracter in areas link up to alcohol taxation, liquor licensing, and responsible consumption. It regularly affords and participates in government and community discussion on all alcohol related issues. Lion Nathan is also an active participant in tax and investment funds issues that impact the broader trans-Tasman business community.COMPANIES CURRENT STRATEGY AND ITS IMPLICATIONS Lion Nathan entered the soft drink, eating house and sales promotion businesses but sold all this because it aimed to concentrate on promoting its beer business. Today, Lion Nathans dodging is to concentrate on the alcohol business, aiming to become a comprehensive alcohol beverage company. Geographically, it concentrates on Australia and New Zealand. Although LN started out in the soft drinks with the Pepsi brand, it sold off that segment in 1998 because it did not guide to pr ofits to a degree that can be reflected in the EBITDA margin. The company also tried restaurant business, seeking synergy effect with beer-similar to Anheuser-Busch, which bought a bread company. However, Lion Nathan withdrew from this business as well when it did not contribute sufficient profit to the company. These examples suggest that diversification for Lion Nathan has always been undertaken to go short-term profitability to make shareholders happy in the end, however, the company always return to its original beer business which generates the highest earnings. Recently, Lion Nathan made one provoke decision concerning the companys international operation. In spite of the recent craze in the business world to penetrate and prosper in the Chinese market, Lion Nathan actually exited from that market in 2005. Since exiting the Chinese market, Lion Nathan concentrated its resources on the Oceanic market.Growth Strategy Lion Nathan strongly believes in sustainable long-term growt h strategy in order to achieve top-line growth and bottom-line results. Its operational skills are the core competences that it has which can provide the foundation for a growth strategy. Lion Nathan has strong competencies in distribution, innovation, premium brands It successfully manages the growth strategy with its growth skills, especially its skill of new product development.One-Stop spy Strategy Lion Nathan offers a variety of services to its customers. Its main belief is to provide convenient and efficient service and also to create the opportunity for the company to sell more products to clients and customersSocial Media Strategy Lion Nathan has also adopted Media strategy to promote its long-neck bottles of Toohey Extra Dry (TED). These TED bottles were tucked in boring non-descript brown bags. Lion Nathan launched a program named TED696 and created designer bags with the help of street artists and designers. These design opportunities were given to public who took over the ownership of the new brand with their innovative designs. Even MTV was involved in it to celebrate the triumphant design. The media strategy of Lion Nathan worked so well that the sales of longneck TED bottles reached 500,000 sales only if in the primary 8 weeks of aspiration.Complete Brand Strategy Lion Nathans success is mainly dependents on its wide range of brands. Its people help in generating huge amounts of profit and boast a portfolio of Australians and New Zealanders front-runner brands. Lion Nathan invests mainly in brands and upgrade their breweries. Lion Nathan has invested 8 to 10% of their revenue income in innovation which goes hand-in-hand with their brand strategy.Culture Strategy Lion Nathans culture strategy focuses its main attention on creating a reek of purpose, vision and values, developing a leadership capability to model the coveted behaviors, and reinforcing those behaviors through appropriate processes and systems. Lion Nas values-based model co nsists of 10 core behaviors, which are hardwired into all HR processes, including remuneration, performance, and talent management. Lion Nathan believes in promoting a bouncing drinking culture. Lion Nathan as a whole works in order to change the unhealthy drinking behaviour and has supported campaigns to foil alcohol misuse and minimise the potential harm associated with it. Its investment strategy has the aim of facilitating wellbeing of people and identify the major areas of alcohol abuse.RECOMMENDATIONS alter the companys brand name among mass marketers through intense price competition Recently, mass merchandisers like the chain big supermarkets such as Coles and Woolworth, consume emerged following integration of the retail industry. Each state in Australia has its own popular brands, and there are strong regional preferences. Lion Nathan that are popular in each area, such as Tooheys in New South Wales and XXXX for Queensland, but in each case their popularity in other st ates is not as high. It is important to extend recognition of these brands nationally because a national brand will stimulate sales to the big national chain retailers.Strengthen the premium beer category LN does not have a strong presence in the premium beer category, despite the companys high market value. It is important to promote premium brands such as Hahn Premium and James Squire, and internationally known Becks. Lion Nathan began brewing Kirin Ichiban, brewed only by the first wort in the brewhouse process at the Malt Shovel Brewery in whitethorn 2003 in response to surging growth in the premium category. This is one brand to be nurtured in the Australian premium beer category.Extend to other alcohol beverages Price controls on beer, including price increases by the two-company monopoly, seem to be wavering. Recent diversification in market indicate a fault from beer to either wine for older people or RTD for the younger generation. In particular, the price difference betwe en premium beers and RTDs is getting closer. Also, the population increase, by and large due to Asian immigrants who typically do not drink much alcohol compared with Australians, has not increased beer consumption. To cope with this situation, LN must seek surplus business in other kinds of alcoholic beverages, as a stand-in for the beer business. Slightly more than 8% of Lion Nathans revenue in 2006 was derived from the wine business since the company entered that segment in 2000.A new threat to the duopoly SAB Miller, one of the biggest players in the world, is planning to enter the Australian beer market in cooperation with Coca-Cola affiliate, Coca-Cola Amatil. When this occurs, it will take advantage of Coca-Colas huge channel, which is reportedly 3 multiplication larger than that of beer. This means it is highly likely that SAB Miller will understand market parity in a short period of time. It is infallible for both Fosters and Lion Nathan to establish strategies that wil l build high foundation barriers immediately.Lion Nathans future strategies are translated to the bundle of competencies. Lion Nathan should build sustainability in the beer business first, and then become a comprehensive alcohol beverage company by extending into the wine and RTD segments so that diverse customer preferences are met. This strategy is supported by 3 factors. (1) an expectation that major afloat(p) shareholders want Lion Nathan to hold its beer business as a change (2) Australias duopolistic beer market share, although it is becoming less stable (3) the simple distribution system.