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    San Miguel Corporation

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    Leah Bautista
    San Miguel Corporation (SMC) is one of the largest and most diverse corporations in the Philippines, with revenues equaling nearly 4% of the country's GDP. Originally founded in 1890 as a brewery, SMC has since expanded into many industries including beverages, food, energy, and infrastructure. SMC operates in oligopolistic markets and focuses on industries that support the Philippine economy. It aims to achieve diverse sales and income through business growth and pursuing opportunities in overseas markets.

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    San Miguel Corporation

    Uploaded by

    Leah Bautista
    69 views8 pages
    San Miguel Corporation (SMC) is one of the largest and most diverse corporations in the Philippines, with revenues equaling nearly 4% of the country's GDP. Originally founded in 1890 as a brewery, SMC has since expanded into many industries including beverages, food, energy, and infrastructure. SMC operates in oligopolistic markets and focuses on industries that support the Philippine economy. It aims to achieve diverse sales and income through business growth and pursuing opportunities in overseas markets.

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    San Miguel Corporation (SMC) is one of the largest and most diverse corporations in the Philippines, with revenues equaling nearly 4% of the country's GDP. Originally founded in 1890 as a brewery, SMC has since expanded into many industries including beverages, food, energy, and infrastructure. SMC operates in oligopolistic markets and focuses on industries that support the Philippine economy. It aims to achieve diverse sales and income through business growth and pursuing opportunities in overseas markets.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    69 views8 pages

    San Miguel Corporation

    Uploaded by

    Leah Bautista
    San Miguel Corporation (SMC) is one of the largest and most diverse corporations in the Philippines, with revenues equaling nearly 4% of the country's GDP. Originally founded in 1890 as a brewery, SMC has since expanded into many industries including beverages, food, energy, and infrastructure. SMC operates in oligopolistic markets and focuses on industries that support the Philippine economy. It aims to achieve diverse sales and income through business growth and pursuing opportunities in overseas markets.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 8

    SAN MIGUEL

    CORPORATION
    Araling Panlipunan 10 Submitted by Dirk Mathew Gatdula The Master's School
    introduction
    With revenues equaling nearly 4% of the Philippines' GDP in 2020, San Miguel Corporation (SMC) is one of the region's most
    extensive and diverse corporations. SMC was first established in the Philippines in 1890 as a single-product brewery. Today, SMC
    has highly integrated operations with ownership in market-leading companies and investments in various industries, including
    beverages, food, packaging, energy, fuel, and oil, infrastructure, property development and leasing, cement, car distribution, and
    banking services. SMC has a variety of businesses that are integrated into the Filipino economy and benefit from and advance the
    country's development and economy.

    San Miguel Corporation 2023


    OLIGOPOLY
    Beer is the most consumed drink in the Philippines and sums up a 70% portion of the domestic alcoholic beverages in the market in
    footings of volume. The Philippine Liqour Industry is oligopolistic in nature. SMC Beer products compete in the premium,
    popular/mainstream, and economy market segments in the Philippines. The popular/mainstream segment continues to be the key
    driver but the share of the premium or upscale brands has been increasing since 2000.

    San Miguel Corporation 2023


    STRENGTHS

    SMC has focused its resources on industries it considers to be attractive growth areas that are
    consistent with the expansion and growth of the Filipino economy since implementing its
    business diversification policy in 2007. In order to achieve a more diverse mix of sales and
    operating income, SMC believes that continuing this strategy and pursuing growth plans
    within each business will be beneficial. This will also put SMC in a better position to access
    capital, present various growth opportunities, and lessen the effects of downturns and
    business cycles.

    San Miguel Corporation 2023


    WEAKNESSES

    There is always the risk of other companies that produce the same product or service. This is
    considered a weakness because the market’s demand changes drastically, especially if they
    find the competitor’s product to have better quality. According to the information in the
    Reinventing the San Miguel Corporation case study (2018), SMC can still not fully utilize
    technology in its front-end procedures, despite incorporating it into its back-end operations.
    This could greatly affect their production. This can lead to poor public relations, customer
    backlash, and loss of potential partnerships in other countries.

    San Miguel Corporation 2023


    OPPORTUNITIES

    Considering how large SMC is in Asia, they are in an excellent position to seize such chances and
    increase their market share. Growth in the overseas market can also allow SMC to diversify the risk
    since it will be less reliant on the home market for revenue, say Roberto Galang and Andrew Delios.
    Another opportunity that the corporation has is its use of advanced technology. The e-commerce
    business strategy can assist SMC in forming partnerships with regional vendors and logistics
    service providers in the global market. Growth in social media can assist SMC in lowering the cost
    of entering a new market and reaching clients with a much smaller marketing spend.

    San Miguel Corporation 2023


    THREATS

    Related to the corporation’s weakness stated above, there is a threat to the target market’s
    change in preferences. In order to make their brand and products more appealing, companies
    must take into account the preferences of their target market. There is also the case rising of
    prices in the market due to inflation. SMC works in a sector where there is a tradition of high
    prices. Roberto Galang, Andrew Delios, and the Rethinking the San Miguel Corporation case
    study claim that this may prevent the company from raising prices to the level that its
    premium prices merit.

    San Miguel Corporation 2023


    CONCLUSION
    SMC has a portfolio of businesses that are integrated into the Philippine economy and benefit from and contribute to the country's growth
    and economic advancement. With an extensive portfolio of goods, including beer, spirits, non-alcoholic beverages, poultry, animal feeds,
    flour, fresh and processed meats, dairy products, coffee, various packaging products, and a full range of refined petroleum products, SMC
    has established itself as a market leader in its businesses in the Philippines. The majority of these goods are market leaders in their
    respective categories. Additionally, SMC supports a network of hundreds of independent suppliers and advances downstream businesses.

    San Miguel Corporation 2023

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