Carlsberg is the world’s fourth biggest beer producing company, after Heineken, SABMiller and AB-inbrev. The fight for market share is ongoing, and the area where the companies are looking for FDI is in ASIA, as other continents are already having high supplier concentration, or are not as attractive as Asia. Purpose The purpose of this thesis is to make an overview of the Asian beer marked, and find the most interesting new countries/markets and companies where Carlsberg with great benefits can put their next investment. The thesis will present a new evaluation model, according to which it is possible to compare the most potentially interesting countries/markets. The model will be flexible, and can be used on many other markets and industries. To give the reader an understanding about the world’s beer marked and Carlsberg, the thesis will use the introduction and background to give some highlight about Carlsberg’s start until now. The reader will be introduced to the international beer marked, in order to understand the players and market share, the footprint on the world map, and the fight for new market shares. Methods To determine the factors that Carlsberg are influenced by, the analysis will look at the historic background, to understand why Carlsberg started to export and the strategy behind. This will be followed by an analysis with help of Dunning’s OLI, to understand the reason why Carlsberg are interested in FDI. In the process of building the model, the thesis will analyse and compare the macroeconomic of the different markets. Moreover, the analysis will use some of the most important variables from the PEST model together with some of the most important from Porter’s Five Forces. The analyse will use 16 different variable parameters when evaluating the markets and breweries. These variables will be entered into an Excel sheet (scoring card), and scored with point from 1 to 5. The scores are collected from the analysis. To give the scoring card more intelligence, each of the variables will be weighed with a percentage from 1 to 100, together not more than 100 for all variables. This is to indicate, which of the variables that are most important. At the end, the score card should demonstrate to Carlsberg, which companies in which market/country that are most interesting for FDI. HD – International Business Afgangsprojekt 2015 Peter J. R. Kaliszan 3 Results The analyse came down to 4 markets that was most interesting for Carlsberg, and in those markets, a total of 6 companies are relevant. When entering all the scores from the analysis into the scorecard, The Philippines came out as the most interesting market together with San Miguel as the most interesting company, when comparing all the other markets and companies. Some of the most positive variables from the analysis are: Company size of 89% of the market share. Nearly a monopoly, which should make higher earnings possible, in comparison with conditions under normal market competition. The costumer’s negotiation power, as they are very loyal to brand, the threats from other companies are minimal. Higher buying power at consumers, as wage is going up on the market; the resources for purchase beer are higher. Low consumption of beer. The Philippines is the country in the analysis with lowest consumption of beer per capita, which makes a future with more consumption a realistic possibility. High birth rates. To look into the future, with more consumers, it is important with a high birth rate. Philippines have 1,89%, which is highest of the 4 countries in the analysis Some of the most negative variables from the analysis are: Unstable political system. The country is right now controlled by the military, which has made the population very upset. The future is unpredictable. The country’s economy. The country is struggling with high debt, and relatively high wages, which harm the competition with the outside world. This may mean reforms from the government. Corruption, Carlsberg fights all kind of corruption, as this is still very common in the country. It may have an effect on Carlsberg possibilities and earnings. As the analysis does not know if any of the companies are for sale, and therefore not know the prices either, the result should be considered as an indication to Carlsberg of where to have focus on FDI. The result can also be used by other beer producing companies, with interest in FDI in Asia. The score card produced in the thesis is generic, and can be used in all markets and industries.
|Educations||Graduate Diploma in International Business, (Diploma Programme) Final Thesis|
|Number of pages||84|