This website uses cookies to ensure you have the best experience. Learn more

A Case Study On ‘Global Wine Industry’

1268 words - 6 pages

Porter's Five Force Model (Detail Analyses)

• Rivalry within Industry
a. Price is an issue for undifferentiated products: Rivalry low as players are using segmented product to attract the market. Companies have tried to differentiate their products using the variety of grape (which is impacted by weather, soil and diseases). In an increasingly crowded retail market, market access is a critical issue. Supermarket dominance will require brand owners to adopt sophisticated marketing techniques in order to survive.
b. No of competitors & Size of competitors: Rivalry high as there are there are a huge number of players with no company having a significant market share. Medium size ...view middle of the document...

b. Learning Curve effect: Rivalry high as players are trying to put their experience to produce high quality wine which has high sales revenue though percent sales volume is low. Any wine grape producer without a secure purchase contract or who is not already in the market with a well established market by now will not succeed in the next 10 years [Bruce Kemp, Global Wine Advice, Sept 2000].
c. Brand preference/ Customer loyalty: Rivalry low as customer has no prior brand preference rather they have fascination on quality.
d. Capital Requirement: Rivalry high as the wine industry is not capital intensive, as it does not require heavy machinery and investments. The amount of capital required to start a winery depend on the scale of production. Very small wineries could be started with a capital investment of roughly $ 1 million and could source grapes from outside growers.
e. Access to distribution channels: Rivalry high as wine producers doesn’t have direct access to distribution channels. They have to satisfy and sell through a whole seller.
f. Regulatory policies: Rivalry high as wine producers had to sell to a whole seller, who then sold it to an established customer base of grocery stores, liquor stores, hotels and restaurant. A winery could sell directly to customers only if it had a gift shop located on its premises. Mailing lists and direct sales via the internet could be used in only a limited number of states because most states had made direct shipment illegal.

• Pressure from Substitute Products
a. Whether price of substitute is attractive: Rivalry high as wine is viewed as more of an elite drink and is not embraced by the general public as high price range (between $20 to $100 per bottle). On the other hand alcoholic beverages such as beer and whisky are more affordable as well as readily available and also low price.
b. Whether buyers view the substitute in equal terms: Rivalry low as the buyers don’t consider substitute in equal terms. Low income and general people take beer and whisky but elite people generally drink wines.
c. Whether buyers can switch to substitutes easily: Rivalry low as the buyers will not switch to substitutes because wine drinkers tended to be professionals or managers, they had wine at least once a week and consumed approximately 88 percent of the wine by volume and they will prefer wine rather than taking normal beer and whisky.

• Pressure from Supplier Bargaining Power
a. Rivalry high as the basic raw material of wine industry is grapes. The quality of wine depends a lot on the quality of grapes. In Europe, the grape farmers tried to form cooperation to get a bargaining power against the wine manufacturers. In the new world,...

Other Essays Like A Case Study on ‘Global Wine Industry’

A Case Study on Cardiac Anatomy

619 words - 3 pages A Case Study on Cardiac Anatomy 1. Dr. Baker spends a long time listening to (auscultating) Caleb’s heart. a. Where on the thoracic surface do you auscultate to the tricuspid, mitral (bicuspid), pulmonary, and aortic valves? i. The aortic valve is heard at the 2nd intercostal space at the right sternal border, the pulmonary valve is heard at the 2nd intercostal space at the left sternal border, the mitral valve is heard

Biology Global Warming Case Study

912 words - 4 pages vary on their atmospheric lifetime and and their global warming potential. For instance, Carbon Dioxide has an atmospheric life of 50-200 years and effects the atmosphere for a long period of time, unlike Methane which has an atmospheric life of 12 years that is much shorter. Although Methane lifetime is incredibly short compared to Carbon dioxide, it has a much influential warming effect than does carbon dioxide. Trapping particular gases in

Market Study: Research Report on Global and Chinese Hair Straightener Industry Growth, Trends And Forecast Development, 2009-2019

649 words - 3 pages Global and Chinese Hair Straightener Industry, Market Research Report, Trends and Forecast Research 2009-2019 Number of Pages: 150 Published Date: Feb- 2016 According to a new market report published by Prof Research Reports Market Research Report on Global and Chinese Hair Straightener Industry: Market Analysis, Size, Share, Growth, Trends and Forecast Report 2009-2019. Market Research Report on Global and Chinese Hair

Research Report on Global Manganese Pillow Industry

1806 words - 8 pages 2014 Market Research Report on Global Manganese pillow Industry was a professional and depth research report on Global Manganese pillow industry that you would know the world's major regional market conditions of Manganese pillow industry, the main region including North American, Europe and Asia etc, and the main country including United States ,Germany ,Japan and China etc. The report firstly introduced Manganese pillow basic information

Case Study on Fedex

1973 words - 8 pages Federal Express – delivering the goods Kevan Scholes This case study looks at how new business models can create vast improvements in competitiveness. However, the models must be suited to the business environment at the time and will have a ‘shelf-life’ as the business environment changes. The case study looks at one on the world’s most successful adopters of a new business model that transformed the airfreight and package delivery sectors

Case Study on Starbucks

5204 words - 21 pages product-based and service-based businesses. Your assignment should be between 2,000 to 2,500 words. Sources and references to support this assignment must be quoted. Introduction The objective of this study is to classify and make a comparison of two global business models in the Marketing and Promotion Mix categories. The organizations that will be used in this study are Starbucks Corporation (Restaurants, Retail Coffee and Tea, Retail

Case Study on Engstrom

654 words - 3 pages of the company as a community and see more value in group success than their individual payment. The Scanlon plan was successful as long as the company as a whole was successful, because each employee’s bonus was entirely dependent on the company’s fertility. In the current situation, in the midst of this far-reaching industrial downturn, it is becoming much more difficult as a means of incentive. For a long time it worked well for Engstrom which

Case Study on Mac

796 words - 4 pages The marketing process A McDonald's Restaurants case study The 4Ps At this point the marketing mix is put together: Product The important thing to remember when offering menu items to customers is that they have a choice. They have a huge number of ways of spending their money and places to spend it. Therefore, McDonald's places considerable emphasis on developing a menu which customers want. Market research establishes exactly what this is

Case Study On UST

1722 words - 7 pages 1. What are the primary business risks associated with UST Inc.? What are the attributes of UST Inc.? Evaluate from the viewpoint of credit analyst or bond holder. UST Inc. is a smokeless tobacco company with a long tradition and a recognizable brand name. A strong brand name can have lots of associations with high quality, revenues, soundness, growth, etc. But, this is one of the characteristics that can be like two edged sward. On

Global and Chinese Light Balloon Industry | Report Is a Complete Study Of Current Trends in The Market 2010-2020

681 words - 3 pages . Global and Chinese Light Balloon Industry, 2010-2020 Market Research Report is a professional and in-depth study on the current state of the global Light Balloon industry with a focus on the Chinese market. The report provides key statistics on the market status of the Light Balloon manufacturers and is a valuable source of guidance and direction for companies and individuals interested in the industry. The report explores the international

Global and Chinese Header Industry | Report Is a Complete Study Of Current Trends in The Market 2010-2020

616 words - 3 pages Chinese Header Industry, 2010-2020 Market Research Report is a professional and in-depth study on the current state of the global Header Industry with a focus on the Chinese market. The report provides key statistics on the market status of the Mixing Station manufacturers and is a valuable source of guidance and direction for companies and individuals interested in the industry. In this part, the report presents the company profile, product

Related Papers

Pestle Analysis On Wine Industry

1276 words - 6 pages , Wine is an alcoholic beverage that is controlled by the ATFD (alcohol, Tobacco ad Firearms division) of the IRS. As a result, it subjected to very high taxes.Economic impactsThe wine industry is a major contributor to the economy of the nation generating approximately more than $ 100 billion in revenue on a yearly basis. Over 1.2 million people are employed in the production, distribution and the sale of the products.Duties and taxes on alcohol

Healthcare Industry Case Study

1734 words - 7 pages Healthcare Industry Case Study Introduction: Following on his experience of medicines used in the Civil War, Colonel Eli Lilly, a Union Officer and a pharmacist, started a small pharmaceutical company in Indianapolis, Indiana, USA with the aim of producing high quality prescription drugs. After Colonel Lilly's death, his son Josiah K. Lilly Sr., and eventually his two grandsons, Eli Lilly and Josiah K. Lilly Jr., each served as president of

Porsche Case Study: Strategic Management In A Global Context

2179 words - 9 pages ., 2013). In 2007, oil prices were on a record high which makes it hard for potential competitors to enter the market. Also, to tackle this problem, Porsche made many fuel-efficient motorcars that can potentially reduce the amount of fuel intake and to maximise the distance the car can run. In this industry, according to the case, it is evidently expensive to run a sports vehicle company as many companies experience tight cash flows which makes it

A Case Study On Cardiac Anatomy

678 words - 3 pages Crimes of the Heart: A Case Study on Cardiac Anatomy Tiffaney is worried about her newborn son. Ever since she brought Caleb home from the hospital it has been so hard to get him to eat and he seems to be breathing too hard all the time. She stopped breast-feeding and tried every bottle and formula on the market, but nothing has worked. So, at his one month check-up, her stomach is in knots as they place Caleb on the scale. The nurse says, “9