Carlsberg in Emerging Markets

2589 Words11 Pages
Companies are taking advantage of doing business in global market for unlimited potential that exist in emerging market. Therefore, in order to be successful in emerging market, they should come up with long term plans and strategies that are effective in the target market. Challenges exist when doing business in eastern countries, but there is always a solution to the problem. The companies should be ready and adapt new strategies in order to compete. A lot of times, they need to be innovative because what works in one market will not be effective in another foreign country. The economy of emerging market is growing rapidly, therefore, there is a high demand for goods and services. Demand is different from nation to nation, therefore, managers have to research and gather data in order to determine if there is a demand for their product or service. First, it is important to determine what to send and where to invest. Then, they should choose a strategy and design a plan. Low cost of labor, raw materials, market size, relaxed local tax and regulation has made emerging market attractive to investors. There are several strategies that firms can choose to use when entering the international market based on the risk factor, technology, cost, and the stage of growth. Import, export, licensing, franchising, turnkey contracting, joint venture and project-based, non-equity venture are among the many strategies. One multinational company, Carlsberg breweries, has been very successful using resources and different strategies to grow in emerging market. Carlsberg realized that expanding in growing economies is necessary in order to be competitive with the other three multinational breweries, Anheuser Bush, SAB Miller, and Heineken. China was the country with the largest population and also the greatest beer production, therefore, Carlsberg started to expand in China around
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