Carlsberg's Strategic Challenges and Opportunities in Emerging Markets

This case study examines Carlsberg's efforts to establish and grow its presence in emerging markets, particularly Russia and China, where it faces stiff competition from both international rivals and local breweries. The analysis employs tools like SWOT and Porter's Five Forces to assess the market landscape and the impact on Carlsberg's strategic choices. The company's strategies include mergers and acquisitions, product and price diversification to counter the dominance of local brands, and adapting to consumer preferences. The study concludes that Carlsberg needs to focus on increasing revenue, reducing debt, and leveraging its strong position in existing markets to introduce new products. Innovation remains crucial for maintaining its market position in the face of rapidly changing consumer tastes and market dynamics. The report references various academic works to support its analysis and recommendations.

CARLSBERG IN EMERGING MARKETS

INTRODUCTION
• one of the most consumed drinks the world is the beer, it's even considered to be the most popular drink after tea and
water Carlsberg lager portfolio incorporates in excess of 500 brands and they fluctuate altogether in term of volume,
value, target crowd, and geographic entrance fifth-largest brewery in the world by volume produced and producer of beer
alcoholic and non-alcoholic
CARLSBERG’S FOCUSED ON
• mature beer markets of western Europe
• improved profitability though innovation and streamlining
• growth markets of eastern Europe and Asian markets
• growth by creating new market segments and building brands

MISSION AND VISION
mission
 the mission of Carlsberg company is to be a dynamic provider of quality beers and also bring its exciting
brand, innovative culture and committed teams which will bring people together and add more enjoyment to
life
Vision
 "probably the leading the beer company among the world"
Problem statement
 Increased competitiveness in the emerging markets from international rivals and local breweries

MARKET ANALYSIS TOOLS
• SWOT ANALYSIS
• PORTER FIVE FORCES

IMPACT OF THE MARKET ANALYSIS ON CARLSBERG'S STRATEGY
• Carlsberg had to strategize for a successful dominance of the market. merger and acquisitions strategy is
now widely used by the firms in achieving its objectives in these markets. This strategy has been efficient
since the firm has been identifying breweries that have the greatest market share and merge with or acquire
them to gain a competitive advantage over its competitors, good example is the acquisition of Baltika beer
which was one of the major consumed beer products in Russia (Howard 2014)
• Carlsberg has also deployed product and price diversification to counter dominance of local products in
emerging markets which have a home advantage. The china market has over 200 local breweries due to the
fact that chines consumers are more reluctant in consuming foreign beer to the local brewed products. This
is influenced by price where foreign products tend to be expensive due to incorporation of taxes, moreover
local beer tend to relate with the local culture this has led to product and price diversification to counter
these setbacks and increase market share in the emerging markets (Madsen and wu 2016)

CONCLUSION AND RECOMMENDATION
• Much has occurred for Carlsberg amid the most recent year regarding development and advancement of the
organization. it appears that they have been fruitful in their system to develop and extend with the
development of the organization and the adjustments in the earth, both as far as contenders and the current
money related circumstance, it is crucial for Carlsberg to have the capacity to adjust and build up a
procedure that empower them to perform well in the developing business sector
• In the short run, it appears to be critical that Carlsberg tries to expand their income and decrease their
obligation however much as could be expected, to guarantee that they are seen as a decent speculation for
both present and potential investors (Pogorletskiy 2016)

CONCLUSION AND RECOMMENDATION
• In the long haul, Carlsberg should attempt to utilize their solid and gainful position in their present markets
to develop and acquaint new items with the business sectors. in two or three years, the money related
market is probably going to end up more steady and purchasers will probably purchase premium brew items
than today and this is an open door that Carlsberg can exploit (Jin 2017)
• Advancement has dependably been imperative for Carlsberg and now that time and inclinations change
quicker than at any other time, this is a capacity that can enable them to keep up their situation in the
market.

REFERENCES
• Howard, p.h., 2014. too big to ale? globalization and consolidation in the beer industry. in the geography of
beer(pp. 155-165). springer, Dordrecht.
• Madsen, E.S. and wu, y., 2016. marketing and globalization of the brewing industry. in brewing, beer and
pubs (pp. 34-53). Palgrave Macmillan, London.
• Jin, X., 2017. 46. brand image design and competitive analysis of energy enterprises based on the evaluation
model. revista de la facultad de ingeniería, 32(15).
• Pogorletskiy, A., 2016. changes in beer excise tax levying: consequences for budget and regional
development (case of st. petersburg). economic policy, 4, pp.115-130.