Carlsberg officially began its business in Greater China in 1978. The company inaugurated theCarlsberg Brewery in Hong Kong in 1981, which became the base for Carlsberg’s expansion into mainland China. In 1995, Carlsberg acquired a major shareholding in a brewery in Huizhou, Guangdong. From that time on, Carlsberg’s presence in the mainland was assured. In 1999, all production was moved from Hong Kong to Huizhou. After 2000, Carlsberg expanded its footprint to the western territories of China. It accelerated the acquisition of shareholdings in breweries in West China.Today, Carlsberg has full ownership or joint ventures in seven provinces.

For Carlsberg, the West China Strategy is not about taking over the market or brand replacement. Rather, through the acquisitions, Carlsberg is trying to raise Chinese beer brewing standards in order to provide better beer for more people, and carry out its commitment of growing together with local community, partners, suppliers, and employees. While keeping the local brands in the West, Carlsberg is assisting the acquired breweries to reconstruct and upgrade the

ir facilities, as well as introducing advanced technology, brewing

methods, and management approaches. As a result of these efforts, Carlsberg has become the leading brewery group in West China

Key Dates:

1995: Carlsberg’s first big move on the Mainland China after acquired a brewery in Huizhou,

Guangdong.

1999: Carlsberg decided to

exit China

.

2000: Carlsberg sold 75% of its Shanghai brewery to Tsingtao.

2002: Go-West Strategy

2003: acquisition in Yunnan, Tibet, Gansu

2005: greenfield investment in Qinghai

2006: Carlsberg had 20 breweries that covered

half of the geography of China

2013: Carlsberg developed to 39 breweries across seven provinces with over 11,000 China employees

2016: Carlsberg had over 50 China breweries and over 60% market share in Western China, where beer consumption has been growing at 12% annually (versus 4-5% nationally). Carlsberg is also currently building its second largest brewery in the world. This $782M facility will have a production capacity of 10M hectoliters a year. And it will be located in Yunnan, China.”

2017: The Tianmuhu Brewery successfully changes its name to

Carlsberg Tianmuhu Beer

(jiangsu) Co., Ltd

1.Please comment the Go-West Strategy development of

Carlsberg in China by applying related theoretical perspectives to support your analysis.Is this a prescriptive strategy or emergent strategy?Please support your arguments in theoretical words.

2.What lessons could other companies learn from Carlsberg to ensure a successful breaking into Chinese market?

Answer rating: 100% (QA)

Question 1 1 The GoWest Strategy is a prescriptive strategy that was developed by Carlsberg in order ... View the full answer