Carlsberg’s Market Selection

Evaluation and comments about Carlsberg’s market selection and market entry strategy.
As a general comment, I think that the emerging markets selection strategy adopted by Carlsberg has beeneffective in terms of final results (currently one of the largest brewer in the world). I think this is mainly due to the extensive experience and failures that this company has had (as were the resourcesinvested in the southeastern provinces of China). The market selection strategy has key elements, such as analysis of the behavior of competitors (for example the analysis produced a substitute such asvodka, which rose in price in Russia) or the analysis to the standard projections population living in western China.
I think another important aspect to note, is how the company implements itsstrategy of entering these markets, because this is a strategy that aims to markets (in some cases) completely different, which should be addressed pointed to the different objectives looking to thesemarkets.
I think this strategy has advantages and disadvantages, because, to implement such strategies, the company must have a high level of knowledge about the market it targets, it must also havecapital to enable it to invest in production plants. Another advantage of this type of strategy is that local governments deliver benefits to these companies to create jobs for the vast amount ofavailable labor. Finally another advantage is that the markets chosen by these companies have a large population, which can ensure strong output growth.
Among the disadvantages of this strategy is thediversity of systems of governments facing such companies, which can generate political problems, such as changes in government laws or severe political instability. Besides it can cause problemscorruption. Both situations described can generate big losses for the company.

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