1.0. recommendations. 1.1. BRALIRWA HISTORY BRALIRWA (Brasseries et

 

1.0. INTRODUCTION

 

The focus of this strategic analysis will be on analysis of
BRALIRWA Limited. I will focus on firm’s external and internal environment,
firm business strategy and corporate strategies. By evaluating firm external
environment I will discuss on PESTEL analysis, Porter’s Five forces and SWOT
analysis. On internal environment I will discuss on company resources and
internal capabilities and VRIO frame work, the next sections I will discuss on
company business strategies is it product differentiation or cost leadership
strategy and analyze company corporate strategies then come up with conclusion
and recommendations.

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1.1. BRALIRWA HISTORY

 

BRALIRWA (Brasseries
et Limonaderies du Rwanda) history goes back to colonial era when a Congolese
company known as BRALIMA (Brasseries, Limonaderies et Maltiere Africains) decide
to construct it new brewery site in Eastern region of the  Belgian colonial territory and chose Gisenyi
in Rwanda as strategic location to supply for both Congo and Rwandan market, in
1957 the first construction work started (BRALIRWA, 2017).

 

In 1959 first beer bottle of PRIMUS sold in Rwanda market and
is the only beer until 1987,in 1960 the Congolese company BRALIMA become a
Belgium 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 for
Rwandan government shares from 1976 to 1979. (BRALIRWA, 2013)

 

In 1996 BRALIRWA S.A.R.L. changed to a public company as
BRALIRWA S.A ,in June 2010, company registered with the registrar general
office as a public limited company (PLC) by share, since January 31st,
2011 BRALIRWA listed it share and start trading on Rwandan Stock Exchange
market and it was the first public company listed on Rwandan Stock Exchange
Market. (BRALIRWA, 2017)

 

Company product portfolios beer brand
which include international brand Guinness produced under license of Business
Overseas Limited, Heineken imported from Netherlands since 1991, (International
beer brand of Heineken group) Amstel imported from Burundi since 2001 up to
2006 when company start local production under license of Heineken group, the company
maintained Primus as the Flagship Rwandan beer brand, Mutzing (Premium beer), Legend
and Turbo King. (BRALIRWA, 2013).From 1974 BRALIRWA under
license of coca cola company it start producing and selling soft drinks (i.e
Coca-Cola, Fanta and sprit) company also import coca zero and produce a local
soft drink of carbonated water known as Vital’o. (BRALIRWA,
2017)

 

 

2.0. EXTERNAL
ENVIRONMENT

 

On this section i will focus on the external environment of
the company using strategic tools such as PESTEL, Porter five forces and the SWOT
analysis.

 

2.1. PESTEL ANALYSIS

 

Political

 

The political analysis shall give us the understanding of the
policy established by the government that may be for the advantage of the
company or disadvantage. Bellow we discussed that issues regarding the monetary
or exchange rate fluctuation may have negative impact on the company also we
discussed issues regarding the regional integration that may be considered as
beneficial but also disadvantage for the company in terms of competition.

 

·       
Monetary policy: Most of Bralirwa raw materials use
from production stage to packaging are imported from abroad and price are fixed
in USD or Euro, company is exposed to foreign currency fluctuation risk caused by
global supply and demand or by government policies to support their farmers, and
this has a negative impact on company business because it cannot change its
product price to every change in foreign exchange rate. (Bralirwa,
2017)

·       
Regional integration: From 1st July 2007
Rwanda is a full member of East Africa Community (EAC) a regional economic and
political bloc, the borders is open to all companies operating in EAC (EAC, 2017).Talking about
regional integration without considering it impact on competition at BRALIRWA
level it would be naive, for sure this integration increased competition in
beer market in Rwanda and this affect BRALIRWA market share (Bralirwa,
2017)

 

Economic

 

In this economic analysis I will look at how company
contribute to the country GDP and purchasing power of the population (Company
consumers)

 

·       
GDP:
Rwanda GDP growth rate increase to 3.70 percent in the second quarter of 2017 (Trading
Economics, 2017).Bralirwa
contribute significantly to the increase GDP of Rwanda through payment of taxes
by approximately 12% of domestic taxes revenue (BRALIRWA, 2017)

·       
Purchasing power: In 2017,the rate of unemployed
people 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 their
purchasing power to buy Bralirwa product hence people decrease their leisure
time and beers drinkers tend to decrease.

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