Strategic Analysis of Carlsberg: With the Use of Product Development Strategies, how can Carlsberg Regain Positive Revenue Development on the Western European Market?

Abstract

The aim of this paper is to investigate the issues of Carlsberg by implementing a qualitative approach with the framework tools of a strategic analysis in order to recommend two proposals of action for Carlsberg to regain positive revenue growth. The qualitative methodology consists of a primarily explanatory, constructive viewpoint gathering primary data from a semistructured interview and a focus group interview. The secondary data is obtained through various academic articles, theories, frameworks, books, and reports. Carlsberg’s internal and external situations were investigated utilizing appropriate frameworks that facilitated the analysis. Within the internal analysis, Porter’s Value Chain, Aaker’s Brand Equity, and the Competitive Advantage Theory functioned as diagnostic tools used by the researcher to comprehend the inner situation of the company. Within the external analysis, Porter’s Five Forces and the PESTEL model contributed as strategic components to understand the macro-environmental factors that have an impact on Carlsberg. The study of Carlsberg, its industry, and its external environment discovered why the company has suffered from revenue decline. Despite the obvious of the global pandemic crisis, the conclusion from the findings were that the company’s identity and values does not live up to the expectations from the modern, political consumers. The insights also proved how the company is starting to lose relevance to the younger generation due to their brand image. Established upon the strategic analysis, proposals of actions were suggested to implement to regain positive revenue growth on the Western European market. The first recommendation suggested Carlsberg to introduce a low-calorie beer with a high amount of alcohol percentage, meeting the demands of a healthier beer in terms of calorie amount. The second recommendation suggested the company to introduce a 100 % organic beer containing vitamin D, a higher amount of protein and a biodegradable packaging. By launching such a product with focus on health nutrients and a sustainable bottling, the company will create higher awareness on their corporate identity.