Carlsberg in Emerging Market: Strategic Issues and Opportunities

Running Head: Carlsberg in Emerging Market
Carlsberg in Emerging Market
Report
System04104
9/15/2019

Carlsberg in Emerging Market
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Executive Summary
The executive summary has been prepared for the CEO of Microsoft. The report shows the
current strategic issue of Carlsberg regarding its marketing strategy in international market.
Carlsberg is a world-class brewery company that is facing strong competitive pressure in the
emerging beer market like Russia, China and India. The company is has huge opportunities in
Russia because of its growing market while China and India are two fastest growing market
for beer products. Carlsberg has done several mergers and acquisition in the past in EU and
China but their experience was not good because the decision of partnership affects the
financial situation of the company and increases its debt. However, the political instability
and barriers for international organisation in Russia and China are also two major concerns
for the company. The company has also faced strict penalty in China when its partner
company file sue against it. However, these all factors shows that company is facing issues
related with its international business strategy and managing its relationship with its partners.
Carlsberg need to focus on reviewing its international business strategy. The company needs
to strong its tie-up with its strategic partners in emerging markets. Apart from this, company
needs to establish itself as a brand name in the developing country like China and India. The
increasing income of people in Western China is also an opportunity for the company but the
company needs to assess exact demand and consumption pattern of people in these areas.
However, if the company strengthen its marketing campaign in the international market and
establish a good relationship with its strategic partners in emerging market, Carlsberg can
acquire a huge market share in these emerging markets. However, company needs to focus on
its promotional and advertising campaign.

Carlsberg in Emerging Market
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Table of Contents
Executive Summary...................................................................................................................1
1. Introduction.........................................................................................................................3
2. Summary of the Case..........................................................................................................3
3. Identification of Strategic Issues.........................................................................................4
4. Theoretical Concept............................................................................................................5
5. Application of Strategy Model...........................................................................................7
6. Conclusion..........................................................................................................................8
References..................................................................................................................................9

Carlsberg in Emerging Market
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1. Introduction
Carlsberg is the known for its best quality beer products and it is one of the world’s top five
brewers. The company known for its huge market share in EU but company is struggling in
the Chinese and Russian market. Despite being the growth opportunities in the Russian,
Indian, and Chinese market, company is facing strong challenges to increase its market share
in these countries. The purpose of this report is to identify the strategic issues of Carlsberg
and analyse the possible opportunities for the company in the emerging markets with the help
of various theoretical models. The report also includes that how company can use various
business models to increase its market share in the emerging market including China, India,
and Russia.
2. Summary of the Case
Carlsberg is the fifth largest brewer in European Union but facing extremely tough challenges
in the emerging market especially Russia, China, and India. The company has a concern
about its success in Chinese and Russian market. The company is also looking toward the
Indian market where large number of competitors already looking for entry. The major threat
for the company is tough competition, political scenarios, and barriers to enter in these
emerging markets. In such a scenario, it is really difficult for the Carlsberg to decide in which
emerging market the company has better chance of success to increase its market share.
However, the company faces extreme challenges in Chinese market, which is growing
continuously and will continue to do so.
Carlsberg faces extreme challenges in China because of various social and political barriers
for foreign brewery companies. Apart from this, while operating in south Chinese market
(which is relatively a well-developed market in China) the company lost a huge case against
their venture partner. However, now company focuses on Western China where beer
consumption is low and it is expected from the company that income of the people will rise
and so will demand of Carlsberg beer in future (Anderson, Meloni and Swinnen, 2018). This
shows that the marketing strategy of company in Chinese market is really problematic. Apart
from this, in the India market, which is also an emerging market in Asia, the political
stability, is not a real concern for the company. Apart from this, the current Narendra Modi
(Current PM) government is also favouring the international companies to invest and expand