AN ANALYSIS OF CARLSBERG BUSINESS STRATEGIES.

AN ANALYSIS OF CARLSBERG BUSINESS STRATEGIES
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Executive Summary
Carlsberg case study will be used to prepare a report where various strategies used to
achieve competitive advantage in the brewery industry will be analyzed. The company is among
the most recognized beer company in the world who mainly deal with brewing, marketing own
beer brands and also selling the beer. Pilsner is among their best recognized global brand, but
they have also produced other regional brands such as Tuborg and the Baltika brand. Carlsberg
vision is to make their beer to be consumer’s first choice beer. Carlsberg has faced various
challenges with their main strategic issue being competition from other competitors. This
company is trying to get answers on what strategy they will employ to make them the best
brewing company. The company has employed many strategies to make sure that they remain
competitive in the market. Various theoretical concepts have been analyzed, Porter five forces as
well as recommendations for the challenges identified through the analysis of the case. The study
concluded that Carlsberg has to diversify to develop beverages which enhance health since this
will enable them to maintain their market position as well as compliance with the policies set by
the government. The recommendations made include company provision of high-quality
products at low costs, use of new technologies in production and packaging to ensure efficiency
using economies of scale in production and also conducting market research to understand what
consumers need and want as this will help in creating a brand following the tastes and
preferences of consumers.

Table of Contents
Executive Summary.........................................................................................................................2
1.0 Introduction................................................................................................................................3
1.1 Case Study Summary.................................................................................................................3
1.2 Strategic Issues..........................................................................................................................5
1.3 Carlsberg Merger and Acquisitions...........................................................................................6
1.4 Business Strategy in Enhancing Competitive Advantage.........................................................7
1.5 Application of Strategy Models.................................................................................................7
1.5.1 Business Strategy Analysis.................................................................................................7
1.5.2 Macro Environment............................................................................................................8
1.5.2.1 Political factors.............................................................................................................8
1.5.2.2 Economic factors..........................................................................................................8
1.5.2.3 Social factors................................................................................................................9
1.5.2.4 Technological factors...................................................................................................9
1.5.2.5 Legal environment........................................................................................................9
1.5.3 Porter’s Five Forces Analysis...........................................................................................10
1.5.3.1 Threat of new entry....................................................................................................10
1.5.3.2 Threat of substitutes...................................................................................................11
1.5.3.3 Power of buyers..........................................................................................................11
1.5.3.4 Power of suppliers......................................................................................................11
1.5.3.5 Rivalry among the competitors..................................................................................12
1.6 Conclusion and Recommendation...........................................................................................12
REFERENCES..............................................................................................................................13

1.0 Introduction
1.1 Case Study Summary
Carlsberg is one among the well-recognized beer company in the world. The company’s main
business conducted include brewing, marketing their beer brands, and also selling their beer.
Their vision was to make their beer the first choice for consumers among other brands. Among
the markets targeted by Carlsberg included eastern and western Europe as well as the Asian
market (Kjeldgaard et al., 205). According to the case study, this company has an objective of
ensuring that they get more market share by tapping the emerging beer market, especially in the
western European beer market. The Russian market was considered to be the market which was
growing very first but to win the market Carlsberg acquired the Baltic Beverages Holding (BBH)
which gave them a competitive advantage and they were able to control the market (Madsen,
2019).
The Danish company was able to control the Chinese market, where it owned approximately
55% of the market share. According to the case study, the company was about to fail in the early
2000s in the Chinese market due to the increased level of competition in the market that was
booming. China beer market was considered to be the largest market due to its large population
though for a company to be able to operate in this market it needed to spend more time and
resources as this market had a lot of competition (Lasserre, 2017). For Carlsberg to do the
business it needed to employ unconventional strategies to do away with their immediate
competitors who included the Heineken, In Bev, SAB Miller and also a Hauser Busch. Carlsberg
employed the strategy of quality, innovation and also a continuous improvement to gain a
competitive advantage (Kotabe and Helsen, 2014).