Carlsberg Case Paper (1).pdf - Running Header Carlsberg Emerging Markets Case Analysis Carlsberg Emerging Markets Case Analysis Cole Chandler BUSA 499

Carlsberg Case Paper (1).pdf - Running Header Carlsberg...

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Running Header: Carlsberg Emerging Markets Case Analysis Carlsberg Emerging Markets Case Analysis Cole Chandler BUSA 499 Section 1 October 23, 2018 Professor Pratt
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Carlsberg Emerging Markets Case Analysis 1 Carlsberg A/S brewing company was first founded in Copenhagen, Denmark by J.C Jacobsen. Things started out simple, their core business model was to brew, market, and sell beer. Since then, they have expanded to become the fifth largest brewing company in the world, with an intense focus on growth, profitability, innovation, quality, and continuous improvement (C-47). Much of their success can be attributed to their extensive merger and acquisition strategy which has allowed them to prepare a business model that focuses on emerging markets within Eastern-Europe, Russia, and China. They are a global company with over 75 breweries in 150 countries, but to maintain and improve their market position they have to continuously evolve and compete against the other major competitors within the industry, Anheuser-busch, Heineken, and SABMiller. Carlsberg has the opportunity to solidify their stake as a majority market leader, but it will take strategy and efficiency. If they are not able to recognize and implement the correct strategy, then they will be at risk of becoming the prey of a larger more superior company. Case 4, “Carlsberg In Emerging Markets,” gives a detailed report of Carlsberg’s market maneuvers and strategies up until 2007. The following case study analysis will identify, discuss and amend the strategy implemented by Carlsberg with a focus on the industry environment and the Mergers and Acquisitions implemented within their strategy. Carlsberg is competing in an industry that is highly developed and slowly turning towards being dominated by just a few large firms. InBev, SABMiller, Anheuser-Busch, and Heineken are the respective top four industry leaders with Carlsberg rounding out the top five. In relation to sales volume among the top five industry leaders, Carlsberg only holds 13 percent of that cumulative volume. Industry leaders, InBev and SABMiller hold close to 30 percent each. This discrepancy puts Carlsberg at a high risk of being acquired. Given the urgency of Carlsberg’s situation it is best to map out the industry they are competing in before developing any further strategy.
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Carlsberg Emerging Markets Case Analysis 2 Porter’s Five Forces model is an outline for the industry environment. It is composed of Threat of new entrants, Power of Suppliers, Power of Buyers, Threat of Product Substitutes, Intensity of Rivalry among competitors. Below is a diagram that outlines the industry environment using Porter’s five forces model: This model shows that the overall industry environment of global brewing is moderately unattractive. The threats contributing to competitive rivalry are intense and unless Carlsberg is able to solidify more market share and create more value through the use of their assets, this industry could be potentially deadly for Carlsberg. Luckily, Carlsberg is a well established brewing company and only has to concern themselves with a few competitors. But because of
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  • Spring '15
  • CatherinePratt
  • Carlsberg A/S, Carlsberg Emerging Markets

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