Carlsberg A/S International corporate strategies depend on the development in several varied areas, where they have established clear cut strategy for investment. Firstly the company has heavily focused on Mergers and Acquisitions (M & A). With the excellent ability to negotiation, the company first bought up major local breweries, something that would see the establishment of a monopoly giving it enough power, leverage, and reason to go into international waters (Hansen, Pedersen, & Larsen, 2011). As such, after the organization established a monopoly at home, they went into Western Europe Merging and Acquiring domestic companies to help increase its presence in these regions. They then moved to the United States, then moved back to Eastern Europe (Russia) and Asia. For instance, in China, the beer company formed an organization with Chang Beverages, which they would use as a vehicle to move into the Asian markets. Despite facing initial setbacks at the onset, the organization controls nearly 60 percent of Southwestern Asia’s beer market.

Diversification and Globalization

To increase its market share, the organization has globalized into numerous parts of the world, carrying and creating their well-known reputation. Through a focus on good quality products, the company has moved into emerging markets, especially after home and American markets began to stagnate resulting in a decrease in profitability. They hold a significant percentage of beer volumes per continent an indication of a successful strategy. The importance of this is that the organization has a shockproof mechanism that will help them cope should there be a market slump in any of the regions; the profits from other areas would balance it out. On the other hand, the company has paid attention to innovation, and product development increasing the product range to suit the needs for varied customers. This strategy allows them to precisely fulfill the customer’s needs, given that each society is culturally structured from the other, ensuring that they obtain new customers who can be easily retained, eliminating the need for spending to acquire more customers (Hansen, Pedersen, & Larsen, 2011).

References

Hansen, M., Pedersen, T., & Larsen, M. (2011). Carlsberg in Emerging Markets. Ontario: Ivey Publishing.

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