South African Breweries in Tanzania

In January 1994, Danie Niemandt, General Manager for South African Breweries operations in Tanzania, must determine what his company, Tanzania Breweries, should do in response to the entry of a new competitor in its market. South African Breweries has executed a successful turnaround of the brewery operations in Tanzania, and now Danie has received word that East African Breweries will be entering the market. East African Breweries is backed by Guinness plc, one of the world’s largest beer brewers, and Guinness has committed itself to investing the resources necessary to build a leading presence in the Tanzanian market. The challenge facing South African Breweries in Tanzania is illustrative of the challenge the company faces in many of its international markets. The company has built its international strategy around its operational expertise, but must now adjust to the entrance of well-funded global beer competitors in several of its international markets. Teaching Note available.