Carlsberg in Emerging Markets: Challenges and Strategies

Competitive strategy

Executive summary
In the report, Carlsberg in emerging markets has been discussed along with the revenue growth
of the firm in different markets. Various challenges and issues are faced by the Carlsberg in
different markets and they had adopted the strategies for entering into the new market. They had
adopted the merger and acquisition, joint ventures, cultural barriers, structure, and changes in
taxation laws of different countries affected the business and growth in different markets. For the
expansion and controlling the business globally, Carlsberg has adopted various strategies to enter
the market. Joint venture and merger & acquisitions helped the business is growing into the
market and made the investment successful in international market.

Contents
Introduction.................................................................................................................... 3
Case summary................................................................................................................ 3
Challenges and Issues....................................................................................................... 5
1. Merger and Acquisition..................................................................................... 5
2. Market consolidation......................................................................................... 6
3. Decreasing sales............................................................................................... 6
4. Ownership structure.......................................................................................... 6
Theoretical concept.......................................................................................................... 7
Application of the strategic model........................................................................................ 8
Conclusion................................................................................................................... 10
Reference.................................................................................................................... 11

Introduction
In the operations of the business, every organization faces different challenges and issues in
managing the business. it is essential for a business to implement an effective plan for the growth
and profitability of the business. the adoption of effective strategies gives a competitive
advantage for the rivals. The various international strategies are available for the business for the
globalization of the business in international market. For the growth and profitability f the
business, expansion is essential in different markets. In this report, the strategies of Carlsberg
will be discussed which are adopted by the company to enter into the new market. Merger &
acquisition and joint ventures are the international strategies which are adopted by the Carlsberg
for the globalization (Hatch and Schulz, 2013). These strategies help in understanding the
behaviors of the people in other countries and their cultural dynamics and it is essential for the
business to go global and understand the different market cultures and behavior. The various
issues are faced by the Carlsberg and they had faced the various failures in different global
markets and with the help of implementations and application of strategies, Carlsberg has
overcome the issues.
Case summary
Carlsberg is the 5th largest brewery in the world and it was founded by Jacob Christian Jacobsen
in 1987. They had focused on the mature beer market of western Europe. They had grown in the
market of western China. It is analyzed that the top emerging markets of Carlsberg are Russia,
China, India, Mexico, and Turkey. Market analysis of Russia is that the beer is considered as the
second most preferable drink after vodka. The sale is increased by 30% in year 2007. After that
the government had implemented the regulation for cutting alcohol consumption in Russia. In
China, Carlsberg grew fast and is expected to grow in future. For all the firms it is high
opportunity in China but with the high potential and social barriers for entering into the market.
They had faced the major issues in the market of China and they had failed many times in the
southern and eastern markets of china. After the failure they had targeted western china for the
growth and development in the market.