University Report: Competitive Strategy Analysis of Carlsberg

This report provides a detailed analysis of Carlsberg's competitive strategy, focusing on its international operations and market dynamics, particularly in the Australian market. The report begins with an executive summary and table of contents, followed by an introduction that outlines the importance of competitive advantage in the modern business world. It then provides background information on Carlsberg, including its global presence and product offerings. The core of the report analyzes a case study concerning Carlsberg's decision to maintain its original recipe for Carlsberg Pilsner in Australia, despite market pressures. The report identifies key strategic issues arising from this decision, such as risk aversion and the differences between the UK and Australian markets. Relevant theoretical concepts, including corporate and international business strategies, are then applied to analyze potential solutions and future strategies for Carlsberg. The report concludes by summarizing the findings and emphasizing the importance of adapting strategies to maintain a competitive edge. Finally, the report includes a comprehensive bibliography of cited sources.

0
COMPETITIVE STRATEGY
Competitive Strategy
Name of the student
Name of the university
Author Note

1
COMPETITIVE STRATEGY
Executive summary
The report focuses on the effectiveness of competitive strategy in market and the manner in
which it can provide organisations with an advantage. The report takes into account the
influence that Carlsberg have in the world and the advantages that it can gain in the
international market. The report analyses a case study that deals with the rejection of change
in recipe in the Australian market for Carlsberg Pilsner. The response of the people in the
country and the advantage that Carlsberg can have is highlighted in the report. Moreover,
issues related to the application of strategies such as the differences in the marketing
environment of the two countries are taken into consideration. Applicaton of theories such as
corporate theory as well as international theory are made so that Carlsberg can continue with
its development in the Australian market. Relevant conclusion is provided based on the
analysis of the case study situation at Carlsberg.

2
COMPETITIVE STRATEGY
Table of Contents
Introduction................................................................................................................................3
About the company....................................................................................................................3
Brief summary of the case..........................................................................................................4
Identification of strategic issues.................................................................................................5
Relevant theoretical concepts.....................................................................................................6
Conclusion..................................................................................................................................7
Bibliography...............................................................................................................................9

3
COMPETITIVE STRATEGY
Introduction
In the modern world, it is necessary that competitive advantage be gained so that
proper management of strategies can be undertaken and at the same time, issues that arise
with the strategies be analysed. According to Scholes (2015), competitive strategy helps
organisations to gain an advantage in the market so that strategies of the rivals can be
identified. Therefore, the aim of each of the organisation is to gain a global perspective that
can help in the development of its advantage in the market.
The report analyses the position that Carlsberg possess in the world of beers and
drinks. The focus is on the identification of tactics used by Carlsberg in Australia. A brief
summary of the case is provided that can help in understanding the issues that exist in the
company. At the same time, any strategic issue that may occur in the company is identified so
that mitigation via relevant theories can be made.
About the company
Carlsberg is an international brewing company that was set up in 1847. The company
first developed its roots in Denmark (Carlsberggroup.com 2019). Carlsberg is known to brew
more than 500 local beers all around the world (Carlsberggroup.com 2019). Some of the
products that can be associated with Carlsberg includes beers, ciders, soft drinks and bottled
water (Carlsberggroup.com 2019). Carlsberg is also known for brewing Tuborg, Kronenburg
and Somersby cider (Carlsberggroup.com 2019). The asset of the company is that it earns
heavy revenue and thus the revenue of Carlsberg is worth about $9.48 billion
(Carlsberggroup.com 2019).
Thus, the net income of the company is $1.24 billion with over 41,000 employees
employed in the global market (Carlsberggroup.com 2019). Carlsberg is known for gaining a

4
COMPETITIVE STRATEGY
high profit from being sponsors of beers and were associated with popular football club
Liverpool since 1992 to 2016 (Carlsberggroup.com 2019). Thus, overall, the company is
considered as one of the largest as well as successful in terms of gaining support from the
customers (Carlsberggroup.com 2019).
Brief summary of the case
The issue deals with the rejection of Carlsberg to update the recipe they use in
brewing beer in markets other than the United Kingdom (Carlsberggroup.com 2019). It has
been seen that the beer brewed by Carlsberg is always considered for direct market approach
in areas beyond the United Kingdom (Carlsberggroup.com 2019). However, as stated by
Thompson, Strickland and Gamble (2015) the campaign to launch new beer in Australia can
be considered as problematic so that the exclusive tastes of the United Kingdom drinkers can
be maintained. Reports have been provided about the introduction of new beer in the market
that consists of new packaging as well as consist of a range of sustainable innovation in the
market (Beerandbrewer.com 2019).
The reason for the adoption of the situation is due to the success that has been tasted
by Carlsberg Pilsner in Australia (Carlsberggroup.com 2019). Thus, due to the success, the
managers along with the market researchers of Carlsberg made the decision to avoid any
changes in the beer recipe that is used (Beerandbrewer.com 2019). Therefore, in the words of
Pisano (2015) the marketing campaign undertaken by the managers down under need to be
upheld so that brewing of premium beer in the market can be made possible. At the same
time, the aim had been to make Carlsberg’s marketing campaign in Australia be different so
that social and digital platforms related to the promotion of the campaign can be made
(Carlsberggroup.com 2019).

5
COMPETITIVE STRATEGY
Thus, overall, it can be said that the issue that is dealt with the case study includes the
direct approach that is undertaken by Carlsberg, which can help the company to continue
with the development of its tactics as well as provide attention to the flavour and quality of
the beer (Beerandbrewer.com 2019). At the same time, it can be said that the refusal to
change the brewing recipe used in Carlsberg can act as an advantage for the company in the
Australian market as the real taste of the beers manufactured can be provided
(Carlsberggroup.com 2019). Hence, the strategic issue that can be made available with the
case study is highlighted.
Identification of strategic issues
Based on the analysis of the case study, it can be said that some of the issues that can
be identified includes the unwillingness to take risks based on changing the recipe that exists
in the market (Carlsberggroup.com 2019). It has been seen that the changes in the recipe may
require the change in the availability of resources as well as hinder the tastes of the beers
associated with Carlsberg (Carlsberggroup.com 2019). This can cause issue with the
marketers and can be of problem as the issue is related to the risk taking activity available at
Carlsberg (Carlsberggroup.com 2019). Thus, it can be said that mitigation of the demand of
the customer need to be understood so that Carlsberg can apply its techniques in the market
(Carlsberggroup.com 2019).
At the same time, another issue that can be analysed from the case study is that the
market of United Kingdom and that in Australia are different. Therefore, the manner in which
the brewing strategy that is to be adopted for the United Kingdom need to be based on the
demand of the people as well as the condition that exists in the market of the country. In the
case of Australia, the people may not accept similar application of recipe and thus, Carlsberg
may lose customers in the market (Carlsberggroup.com 2019). Despite this, there has been

6
COMPETITIVE STRATEGY
reports about the success of the company in the Australian market, without changing the
recipe of its product the Carlsberg Pilsner (Carlsberggroup.com 2019).
The identification of the issues can lead to strategic impairment in Carlsberg and at
the same time, can lead to its loss in the Australian market. Therefore, an analysis of the
mitigation techniques that are to be used for the strategies need to be undertaken so that
Carlsberg can continue with its management in the business market. In this regard, it can be
said that for Carlsberg to be able to make impact in the market, it is necessary to apply
relevant theoretical concepts so that the company can remain successful in the Australian
market (Carlsberggroup.com 2019). The description of the theoretical concepts can be
analysed as follows.
Relevant theoretical concepts
Based on the analysis of the issues that are faced by Carlsberg in the market of
Australia, it can be said that the application of theory related to the development of corporate
strategy can be taken into consideration. In the words of Johnson (2016), the focus of the
corporate strategy is to manage the resources that exist in the market and the manner in which
each of the resources can be utilised for proper application in the market. At the same time, as
observed by Yuliansyah, Rammal and Rose (2016) the corporate strategy needs to focus on
the objectives of the company so that its aim can be maintained throughout its business. In
the case of Carlsberg, the corporate strategy need to focus on the challenges that exist while
developing the manufacturing department in the Australian market (Carlsberggroup.com
2019).
The application of the corporate strategy for Carlsberg is mainly focused on the lack
of coordination that exists in the market (Carlsberggroup.com 2019). It has been seen from
the case study that the company has been influential in the retention of the recipe used for the

7
COMPETITIVE STRATEGY
manufacturing of Carlsberg Pilsner in Australia (Carlsberggroup.com 2019). The positive
response that is derived from the customers in the Australian can compel the managers of
Carlsberg to look for an improvement in the competitive advantage that has been derived
(Carlsberggroup.com 2019). Therefore, in this case, it can be said that for Carlsberg to
continue with its marketing campaign in Australia, the application of corporate strategy can
be useful.
Another useful theoretical concept that can be used by used for Carlsberg is the
application of the international business strategy (Carlsberggroup.com 2019). The
international business strategy can provide Carlsberg with a guide in the manner in which
commercial transactions in the market can be analysed (Carlsberggroup.com 2019). In the
words of Leonidou et al. (2015), it is necessary to identify the international business
strategies that exist in the global market so that success outside the United Kingdom can be
taken into account. The goal of Carlsberg is to increase its revenue from the Australian
market using similar recipe for the brewery of the beers (Carlsberggroup.com 2019). In this
regard, it can be said that the application of the international strategy in the market can help
Carlsberg to set up a strong base of marketing unit in the country (Carlsberggroup.com 2019).
Conclusion
Therefore, from the analysis of the case study, it can be said that for Carlsberg to
succeed in the international business, it is necessary that the company promote its marketing
campaign in the Australian market. It is necessary that the brewed beers and other drinks
manufactured by Carlsberg implement the application of corporate strategy as well as
international strategy for the promotion of its campaign. The overall assessment of the case
study highlighted certain issues that are to be resolved by Carlsberg so that the company can
continue to activate its services for the customer satisfaction in Australia.

8
COMPETITIVE STRATEGY
In the case, it can also be said that each of these strategies can be used for gaining
competitive advantage in the market mainly because of the difference in the marketing style
that exists in Australia and the United Kingdom. In this case, it can be said that for Carlsberg
to develop its market, the company can identify the required theoretical perspective so that it
can continue to be successful in the Australian market. The issues identified can be solved by
the application of these theoretical concepts and Carlsberg can gain proper understanding of
the market in Australia along with the competitors that exist.
Overall, it can be concluded that the case had provided proper analysis of the issues
that Carlsberg may face while conducting international business without having made
changes in its tactics. However, the positive responses of the people may help Carlsberg to
gain proper advantage in the market as well as maintain its traditional beer brewery process.

9
COMPETITIVE STRATEGY
Bibliography
Beerandbrewer.com 2019. Carlsberg recipe to remain unchanged in Australia - Beer &
Brewer. [online] Beer & Brewer. Available at: https://www.beerandbrewer.com/carlsberg-
recipe-to-remain-unchanged-in-australia/ [Accessed 21 Sep. 2019].
Block, J.H., Kohn, K., Miller, D. and Ullrich, K., 2015. Necessity entrepreneurship and
competitive strategy. Small Business Economics, 44(1), pp.37-54.
Carlsberggroup.com 2019. Carlsberg Group. [online] Available at:
https://www.carlsberggroup.com/ [Accessed 21 Sep. 2019].
Foucault, T. and Frésard, L., 2018. Corporate strategy, conformism, and the stock
market. The Review of Financial Studies, 32(3), pp.905-950.
Hickman, C.R. and Silva, M.A., 2018. Creating excellence: Managing corporate culture,
strategy, and change in the new age. Routledge.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Köhler, K. and Zerfass, A., 2019. Communicating the corporate strategy. Journal of
Communication Management.
Leonidou, L.C., Fotiadis, T.A., Christodoulides, P., Spyropoulou, S. and Katsikeas, C.S.,
2015. Environmentally friendly export business strategy: Its determinants and effects on
competitive advantage and performance. International Business Review, 24(5), pp.798-811.
Pisano, G.P., 2015. You need an innovation strategy. Harvard Business Review, 93(6), pp.44-
54.

10
COMPETITIVE STRATEGY
Puranam, P. and Vanneste, B., 2016. Corporate strategy: Tools for analysis and decision-
making. Cambridge University Press.
Rugman, A.M. and Verbeke, A., 2017. Global corporate strategy and trade policy.
Routledge.
Scholes, M.S., 2015. Taxes and business strategy. Prentice Hall.
Thompson, A., Strickland, A.J. and Gamble, J., 2015. Crafting and executing strategy:
Concepts and readings. McGraw-Hill Education.
Yuliansyah, Y., Rammal, H.G. and Rose, E., 2016. Business strategy and performance in
Indonesia’s service sector. Journal of Asia Business Studies, 10(2), pp.164-182.