Monopolistic Competition and Market Positioning Strategies in Zimbabwe's Brewing Industry: Implications for Upgrading the Sorghum Value Chain.

Abstract

Zimbabwe’s brewing industry is characterized by monopolistic competition. The objectives of this study were to 1. Determine emerging competition for beer brewing industries in Zimbabwe 2. Describe market positioning strategies to enhance the performance of sorghum contracts. 3.Identify marketing challenges faced by farmers and brewing companies. The study was conducted in 4 districts (Binga, Chiredzi, Hwange, Matobo) that are situated in Natural Regions IV and V. A mixed methods cross-sectional study was used. A survey questionnaire was used to collect data from 281 respondents. A multistage sampling approach with purposive selection of districts dominant in small grain production was conducted. For each district, two wards were selected randomly. Porter’s five forces were used to assess the competitive strength and market positioning strategies of beer brewing companies. Results showed that Delta Corporation is the leading competitor among the brewing companies in Zimbabwe. There are few players in the beer industry. On market position strategies the industry uses product differentiation. Farmers have been faced with resource limitation whilst contracting companies have challenges in collecting low volumes of grain from farmers. Future prospects of beer industry of Zimbabwe are bright. There is need to lower entry barriers and promote competition among brewing firms