Answer To: 2. Group Report Write a report on one of 5 nominated cases, highlighting key aspects of competitive...
Sundeep answered on May 19 2020
19
Carlsberg
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Executive Summary
This report is the study of the strategies which are applied by the Carlsberg organisation towards the success of the organisation in the national and the international markets.
The growth strategies which are applied by the organisation in order to grow in the sector and the portfolio of the products it handles. The target markets and the developments of the organisation along with the opportunities in the developed and developing nations
Table of contents
Introduction------------------------------------------------------------------------------4
International Strategy and Prospective Partners-------------------------------5
Potential Acquisitions and Bids-----------------------------------------------------8
Business and Corporative Strategy------------------------------------------------9
BCG Matrix for the corporate strategy------------------------------------------10
Carlsberg current strategy----------------------------------------------------------11
Conclusion------------------------------------------------------------------------------12
Carlsberg India----------------------------------------------------------------------- 13
References------------------------------------------------------------------------------18
Introduction
Beer is one of the most consumed beverages in the world which lies in the non-alcoholic section. A survey conducted said that Beer was found out to be the third preferred drink after water and tea. There are multiple brewing companies in the world out of which Carlsberg is one of the best and one of the leading organisations.
The 4th position in the leadership is taken by Carlsberg Group. There are a high number and high variety of brands that lie under the Carlsberg group. The differences lie in the brands, markets and also the cultures of the different organisations. (Hatch, M.J. and Schultz, M., 2017)The activities of the organisation are centred towards the core strength of the organisation where the products are leading the organisation to the foremost point. Due to the disparity in the markets, the earnings and the developments, the growth contribution factors the areas of specialisation differs.
There are some countries where Carlsberg do not have their own breweries, in such countries, the group operates by selling / exporting their products and also by licensing agreements. A core focus lies in the establishment and the development of strong market dynamics for the international premium brands through the process of dynamic partnership and licensing, exports and the duty free partnerships across the globe.
There are more than 500 beer brands in the portfolio of Carlsberg. The differences in the brand lies in the Target Audience, Price, Volume and Geographic penetration
International Strategy and Prospective Partners
One of the main strategic thought behind the Carlsberg organisation is that it takes the beer to the local markets and gets the customisations done and then markets the beer internationally with a little changes in the composition. The original target market for the beer is the local domestic market. This makes sure that the beer Carlsberg manufactures meets the worldwide need and also does not meet the competition. This makes sure that the competition does not force Carlsberg to lower down volume or even reduce the prices. The centralisation of the beer development functions such as the Research and Development are carried out in the home country and the market and the marketing strategies are decentralised, this helps to maintain a global outlook with local penetration in each of the nation it works.
Carlsberg went global for the following motives:
1. To upsurge the profits and the sales by penetration into newer markets and newer geographic locations by selling into the newer markets and as well as the regional markets.( Hatch, M.J. and Schultz, M., 2017)
2. This is possible because Carlsberg exports its products into multiple countries where it does not have its own breweries and in some cases it works by the licensing agreements.
3. One example of this is the Charrington and Tetley in Britain by giving them the rights to draught and bottle the Carlsberg beer and in return get the Royalty Fee. A joint venture was also formed with the Scottish and New Castle companies which have the brewing setup in Hong Kong which is now fully owned by Carlsberg
4. The mergers are also formed with the organisations such as Danish rival, Ruborg and Orkla of Norway which were taken over fully by Carlsberg. .
5. It is a strategy to enter into new markets by starting at low pace and also cautiously by using the services of the partners and also avoiding the information costs and also risk some other information leak and encounter trade barriers associated with the international involvement. Carlsberg also gets to learn about the international markets where it enters with a joint venture and then later owns up the whole organisation
One of the main reasons to protect the home market share is because by operating in the foreign countries, it takes away the business by offering the customers their preferred choice of their choices and also letting the competitors understand that they would meet with the same fate if they try to attack Carlsberg’s home market.( Rasmussen, J.L., 2015)
One of the main reasons that Carlsberg has gone international and also maintains the international structure is that it can avoid the negatives and the downcomings in the home country if they fall, example recession in the home country would not affect much since the spread of Carlsberg is very high either by setups in different nations or by collaborations with the other companies.
There are many reasons why international clients undergo merger and collaboration with Carlsberg even though they know that they might be overtaken. The reasons are:
1. The organisations will benefit from the intangible properties like in the case of licencing where the organisation who is the licensee gets to keep the Carlsberg’s intellectual properties such as the patents, processes and the trademarks, It gets to understand that the partner understands the processes as well(Rasmussen, J.L., 2015)
2. Carlsberg also supports their products and services and the other organisation may get a chance to get featured in the Carlsberg advertisements. If the merger or joint venture takes place, Carlsberg...