A Study On Tsingtao Beer's Strategies Of Internationalization

With the development of global economic integration, world beer industry is becoming more and more multinational and the competition for market share heats up on a global scale. As China is becoming one of the most important economies and its consumption potential is gradually released, China's beer market is receiving more and more attention from beer producers all over the world. In 2006, China's per capita beer consumption reached 25 liters—nearly the same as the world's average level. With the continuous improvement of China's residents' consumption level, domestic beer demand will continue to increase and the beer market size will be further expanded. All these factors intensify the competition in China's beer industry. Therefore, it has become an urgent need for Chinese beer producers to implement adequate strategies and internalization, which are able to help them adjust to the fierce competition.Fortunately, many Chinese beer enterprises have realized the urgent situation they are facing. But in the course of internationalization, they meet with misunderstanding and puzzlement. Moreover, as China's beer market has become an indispensable part of world economy and been enlarged greatly, there are few studies on how to develop successfully in both domestic and foreign markets. Under this situation, based on the further study and analysis of the collected data, this paper surveys the current features and trends of beer market in China, the world and some developed countries, and analyzes the increasingly competition and the problems in both domestic and international beer markets in a professional way. Meanwhile, by gathering and analyzing a great deal of materials, the case study on Tsingtao beer group expatiates the "Two-Step-Internationalization Path" which means inward internationalization first and then outward internationalization. The choice of international entry mode and brand exporting, which have been adopted by Tsingtao, not only avoided the high tariffs in overseas market, but also add assets to Tsingtao's brand. Tsingtao's international strategy provides a significant path for Chinese breweries to develop and expand foreign market.This paper tries to put Tsingtao Beer in the context of the global economy, and focuses on the building of competitiveness and internationalization. There are seven sections in this paper. Firstly, the article briefly introduces Tsingtao beer and Tsingtao group. The second part reviews the realistic background and supporting theories of internationalization. On the basis of the analysis about domestic and foreign beer market in chapter three, part four uses SWOT model to analyze the internal and external environment faced by Tsingtao. The fifth part mainly addresses the guidelines of Tsingtao's international strategy. Part six which is the main part of this paper is about the choice and implementation of Tsingtao's international entry mode. The last part lists suggestions for Tsingtao and implications for other Chinese enterprises that are going out to the world.