0. INTRODUCTION The focus of this strategic analysis will be on analysis ofBRALIRWA Limited. I will focus on firm’s external and internal environment,firm business strategy and corporate strategies. By evaluating firm externalenvironment I will discuss on PESTEL analysis, Porter’s Five forces and SWOTanalysis. On internal environment I will discuss on company resources andinternal capabilities and VRIO frame work, the next sections I will discuss oncompany business strategies is it product differentiation or cost leadershipstrategy and analyze company corporate strategies then come up with conclusionand recommendations. 1.1. BRALIRWA HISTORY BRALIRWA (Brasserieset Limonaderies du Rwanda) history goes back to colonial era when a Congolesecompany known as BRALIMA (Brasseries, Limonaderies et Maltiere Africains) decideto construct it new brewery site in Eastern region of the Belgian colonial territory and chose Gisenyiin Rwanda as strategic location to supply for both Congo and Rwandan market, in1957 the first construction work started (BRALIRWA, 2017).
In 1959 first beer bottle of PRIMUS sold in Rwanda market andis the only beer until 1987,in 1960 the Congolese company BRALIMA become aBelgium Company, in 1963 Rwandan brewery company founded as BRALIRWA S.A.R.L,in 1971 Heineken N.V a Dutch company acquired 70% of company other 30% was forRwandan government shares from 1976 to 1979. (BRALIRWA, 2013) In 1996 BRALIRWA S.A.
R.L. changed to a public company asBRALIRWA S.A ,in June 2010, company registered with the registrar generaloffice as a public limited company (PLC) by share, since January 31st,2011 BRALIRWA listed it share and start trading on Rwandan Stock Exchangemarket and it was the first public company listed on Rwandan Stock ExchangeMarket. (BRALIRWA, 2017) Company product portfolios beer brandwhich include international brand Guinness produced under license of BusinessOverseas Limited, Heineken imported from Netherlands since 1991, (Internationalbeer brand of Heineken group) Amstel imported from Burundi since 2001 up to2006 when company start local production under license of Heineken group, the companymaintained Primus as the Flagship Rwandan beer brand, Mutzing (Premium beer), Legendand Turbo King. (BRALIRWA, 2013).
From 1974 BRALIRWA underlicense of coca cola company it start producing and selling soft drinks (i.eCoca-Cola, Fanta and sprit) company also import coca zero and produce a localsoft drink of carbonated water known as Vital’o. (BRALIRWA, 2017) 2.0. EXTERNALENVIRONMENT On this section i will focus on the external environment ofthe company using strategic tools such as PESTEL, Porter five forces and the SWOTanalysis. 2.1.
PESTEL ANALYSIS Political The political analysis shall give us the understanding of thepolicy established by the government that may be for the advantage of thecompany or disadvantage. Bellow we discussed that issues regarding the monetaryor exchange rate fluctuation may have negative impact on the company also wediscussed issues regarding the regional integration that may be considered asbeneficial but also disadvantage for the company in terms of competition. · Monetary policy: Most of Bralirwa raw materials usefrom production stage to packaging are imported from abroad and price are fixedin USD or Euro, company is exposed to foreign currency fluctuation risk caused byglobal supply and demand or by government policies to support their farmers, andthis has a negative impact on company business because it cannot change itsproduct price to every change in foreign exchange rate. (Bralirwa, 2017)· Regional integration: From 1st July 2007Rwanda is a full member of East Africa Community (EAC) a regional economic andpolitical bloc, the borders is open to all companies operating in EAC (EAC, 2017).Talking aboutregional integration without considering it impact on competition at BRALIRWAlevel it would be naive, for sure this integration increased competition inbeer market in Rwanda and this affect BRALIRWA market share (Bralirwa, 2017) Economic In this economic analysis I will look at how companycontribute to the country GDP and purchasing power of the population (Companyconsumers) · GDP:Rwanda GDP growth rate increase to 3.70 percent in the second quarter of 2017 (Trading Economics, 2017).Bralirwacontribute significantly to the increase GDP of Rwanda through payment of taxesby approximately 12% of domestic taxes revenue (BRALIRWA, 2017)· Purchasing power: In 2017,the rate of unemployedpeople in Rwanda increased to 16.70 percent from 13.20 in 2016 (Trading Economics, 2017)due to the fact that a high rate of unemployed people in Rwanda affect theirpurchasing power to buy Bralirwa product hence people decrease their leisuretime and beers drinkers tend to decrease.