MT KENYA UNIVERSITY

NAIROBI CAMPUS

UNIT CODE; BBM 1101

GROUP MEMBERS

1. LYNN SERENA

2. DEKHA MOHAMMED HUSEIN

3. SADIK RAGE

4. RASHID MKONWA

5. MICHAEL MUCHOKI

6. LYDIA GITAU

TITLE: SWOT ANALYSS OF E.A.B.L

INTRODUCTION

EABL is a holding company based in Kenya. It was formally incorporated as a private company in
1922. The company alongside its subsidiaries primarily produces and markets alcoholic and non
alcoholic beverages. The companys products portfolio includes beer, spirits and non alcoholics.
The company mainly exports its products to eastern and southern Africa. It also exports its
products to outside Africa including US, Japan, Canada, Australia and UK.
The company is headquartered in Kenya.

MISSION; To create the best performing, most trusted and respected customer products
company in Africa.
VISSION; To be the most celebrated business in every market in east Africa.

SWOT ANALYSIS
STRENGTH
Pricing power, customers typically rebel against price increases by switching to competing
products but since EABL the company has pricing power customers will continue using their
products and services. EABL has the ability to charge customers higher prices

Innovative culture, an innovative culture helps the EABL to produce unique producers and
services that meets their customers needs

Strong management, a strong management of the company helps its reach its potential by
utilizing its strengths and eliminating weakness, good decision making also favors the companys
growth

WEAKNESSES
High debt burden increases risk that the East Africa Brewery Limited goes bankrupt if they make
a poor business decision. Increasing risk can increase the companys debt interest payment
Bad acquisition, this affects EABL by increasing their cost and reducing the value of their
combined businesses. Acquisitions can also distract from the core business and merge cultures
that dont complement each other.

High staff turnover, this affects the companys ability to compete because replacing valuable
staff is expensive

OPPORTUNITIES
Online market- the online market offers EABL the ability to greatly expand their business. The
company can market a wider audience for relatively little expense

Emerging markets, are fast growing regions of the world that enable EABL to quickly expand.
This enables the company to expand their business and diversify their portfolio of products and
services

Innovation, a greater innovation can help EABL to produce unique products and services that
meet customers needs.

THREATS
Substitute products, the availability of substitute products affect EABLs ability to raise prices
because customers can easily switch to another product or service.

Political risk, politics can increase EABLS risk factors because the government can easily and
quickly change business rules that will negatively affect the business

Change of taste, consumers can change their tastes very quickly, this diversely affects the
business

SOLUTIONS
STRENGTH
Unique products and services favor the expansion of the business because they expose their
customers to great expectations thus they meet their needs to satisfy them
EABL has to support its sales activities by understanding its customers better
It has to access as a prospective partner, vendor and supplier
WEAKNESSES
The company should avoid staff replacement to reduce the expense incurred on staff turnover
To reduce risk and increase profit of the company, it has to be responsible for the health of the
business and good decision making
OPPORTUNITIES
Make good relationship with the new markets so as to allow its expansion and diversify their
products and services
Creation of wider audience through social media to advertise their products and services to the
customers
THREATS
EABL has to know the goods and services customers want to reduce the risk of customers
changing their taste
The company also has to balance its product prices to prevent takeover by their substitute
products

CONCLUSION
EABL should work on knowing their customers taste and preferences so as to satisfy their needs,
this also affects the growth of the business positively.