The Application of an International Business strategy by Carlsberg
Contents
Executive Summary 3
Introduction. 3
Carlsberg’s Application of International Strategies in the Past. 3
Competitive dynamics of the industry 4
Expansion into the Russian Market. 5
Expansion into the China market. 6
Expansion into the Indian Market. 7
Recommendations and Conclusion. 7
References 8
Executive Summary
Carlsberg is amongst the largest beer brewers in the world. Its strategy for growth has always been International expansion. The company goes about this by licensing the manufacture of its drinks to partners. Additionally, it buys out alcoholic beverage manufacturing companies in different parts of the world. In recent times this strategy has not been working well for Carlsberg due to the increase in competition. Its expansion of the three emerging markets, India, China, and Russia has been limited success. It is clear that Carlsberg has been disregarding several key principles of International business strategy. The company has on several occasions picked the wrong expansion strategy and failed to do a thorough analysis.
Introduction.
Carlsberg is the Fifth largest beer brewer in the World. The company was founded in Denmark in 1847 and has grown over the years to become an international icon. The Carlsberg group sells a wide variety of local beers in the different parts of the world. Some of its most popular brands are the Carlsberg, Toborg beer, and Baltika in Russia. The success of the Carlsberg group is attributed to the adoption of an international strategy. An international strategy is one of the strategies that a private company can use to reach a wider geographical area. Such a company would aim to expand its business operations in different countries across the globe. This way the company is protected against economic turmoil in its home market. There are different ways that a company can implement an international strategy. This usually includes looking for partners and sometimes setting up a new branch in the country. This report analyses the Carlsberg Groups expansion into Russia and China in relation to the established principles of International business strategy.
(I.C. RS 8592)