...Table of Contents 1. Introduction 1 2. Wine Manufacturing Industry and External Environment 2 2.1 Wine Manufacturing Industry 2 2.2 External Environment 6 3. Porter’s 5 Forces Analysis 10 3.1 Threat of New Entrants 11 3.2 Bargaining Power of Buyers 12 3.3 Threat of Substitutes 14 3.4 Bargaining Power of Suppliers 16 3.5 Rivalry within the Competitive Arena 17 4. Conclusion 19 Reference 21 1. Introduction Captain Arthur Phillip brought grape vines from Brazil and the Cape of Good Hope to Australia when his fleet arrived in Botany Bay, located in Sydney, in 1788, according to Wine Australian which is one department of Australian government. Since that Australia had made a history of producing and exporting wine. In 1854, a barrel of fortified wine was exported to London, which is the first reported Australian wine export (Wine Australia, 2012). Subsequently, Australian exports in wine have boosted at an extraordinary rate especially in recent years, reaching the record level in 2007. Today, Wine Australian also point out that Australia is the fourth largest wine exporter in the world, constituting about 4% of total world wine production, and export over 800 million liters to international wine market and as a result, it produces a contribution of around A$3 billion per year to Australian economy. Australian wine exports to more than 100 countries; mainly two biggest markets are United Kingdom and United State. Besides, there are other significant markets...
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...Question: For an industry of your choice, identify and analyse the most important drivers and barriers affecting its development. Answer Drivers and barriers affecting development of any industry revolve in the fraternity of globalization. Globalisation in business is the worldwide movement toward economic, financial, trade, and communications integration (Frank, 1998). It implies the opening of local and nationalistic perspectives to a broader outlook of an interconnected and interdependent world with free transfer of capital, goods, and services across national frontiers. Drivers in the business concept are critical forces which can be built within business strategy to enable a company to attain its set goals (Gilbert, 1994). Barriers to industry development are forces that deters the business organization from attaining the desired goals and these are encountered both in the internal as well as external business environment (Hough et al 2011) It is therefore imperative to evaluate key drivers and barriers affecting development in a bid to craft strategic tools that can stimulate strategic thinking, generate strategic foresight, provide a basis for testing existing strategies, explore and understand complexities of the future (Trompenaar et al, 2003). This can aid decision making and contribute to preparation for the future. As such, this essay seeks to explore key issues in strategic management and key theoretical models in the South African (SA) Wine Industry and that of...
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...Porter’s Five Forces Wine Industry Contents 1. Bargaining power of buyers………………………………………………………………………….1 2. Bargaining power of suppliers………………………………………………………………………2 3. Rivalry between existing companies………………………………………………………….…4 4. Threat of new entrants………………………………………………………..……………………….5 5. Threat of substitutes…………………………………………………………………………………….6 6. References………………………………………………...……………………...…………………………8 1. Bargaining power of buyers The buyer’s power within the wine industry varies between different places in the world. There are for example strategic differences between Europe and the “New World”. The “New World” includes countries like the US, Australia, Chile and South Africa. In Europe there is a big competition between small private family wineries while there are in the “New World” only a few large companies that have a big market share. To give you an example of this Australia have four firms that at the moment have around 75 % of the market while in France there are around 230 000 wineries. The power of buyers seems to be higher in Europe compared to the “New World”, in Europe the consumers have a more sophisticated taste and are more price sensitive compared to the “New World”. In Europe wine is sold through many different supermarkets which provide a wide range of different wine sorts from a lot of different private labels. This can be one of the reasons why the power of the buyers seems to be a bit higher in Europe than in for...
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...International Business & Economics Research Journal Volume 2, Number 9 The Changing Structure Of The Global Wine Industry Michael A. Roberto (E-mail: mroberto@hbs.edu), Harvard Business School Abstract This paper examines the distinctive economic structures that exist in the wine industry in various regions of the world, and it identifies the critical forces driving changes in the structure of this industry. The paper accomplishes these objectives by applying concepts from industrial organization economics, agency theory, and the field of competitive strategy. T he economic structure of an industry affects the intensity of competition and the average profitability of firms in a particular market.1 While strategy scholars have debated the extent to which industry structure explains differences in firm profitability, virtually no one disputes the idea that structural forces have a sizeable impact.2 More recently, researchers have demonstrated that industries exhibit substantial structural differences across various geographic markets around the world. These structural differences are driven by institutional heterogeneity and contrasting patterns of historical development. 3 Over time, the structure of a global industry can change dramatically. In particular, many industries have experienced consolidation in recent years. Industry consolidation raises several important questions for scholars and practitioners. First, why do these structural shifts take place? Second...
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...HALL Wines Napa Valley and Sonoma, California GROUP 16 Chad Burns Ryan Carlson Maurilio Cometto Kathryn Hall BERKELEY COLUMBIA MBA MARKETING STRATEGY CASE PROFESSOR NOEL CAPON SUMMER 2006 Table of Contents The individuals in connection with this report are: Berkeley Columbia MBA Summer 2006 Group 16: Chad Burns Mauriilo Cometto Ryan Carlson Kathy Hall Page Executive summary Preamble: Introduction to Hall Wines Headlines Situational awareness Market overview Customer insight Competition and complimenters Market strategy Achieving differentiation Market segmentation Branding strategy Implementation plan Marketing offer Distribution plan Metrics for success Appendices 75 102 119 123 46 53 71 14 26 32 2 4 1 Executive summary Preamble: Introduction to Hall Wines HALL is a relatively young winery in startup mode. HALL is comprised of two wineries located in St. Helena and Rutherford, Napa Valley, California. In addition to the two wineries, vineyard land is located in other parts of Napa and Sonoma counties. A total of five primary vineyards are owned by HALL. HALL is not yet profitable. Current case production of all HALL Wines approximated 8,500 cases in 2005 with 47,000 cases projected in 2010. Company overview HALL is the dynamic Napa Valley vision of Craig and Kathryn Hall created in 2002 as a showcase for both their exceptional new wines along with their extensive vineyard holdings. The Halls have sought first and foremost to craft wines of uncompromising...
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...Malko Ebers / Simon Wied SWOT Analysis Robert Mondavi and the Wine Industry Seminar paper Dokument Nr. V27469 http://www.grin.com/ ISBN 978-3-638-29511-6 9 783638 295116 Midterm Group Project Robert Mondavi & The Wine Industry SWOT Analysis Course Strategic Management: Concepts & Cases Chair of Management, especially Strategy and Leadership University of Konstanz - Summer Term 2004 by Malko Ebers Simon Wied Malko Ebers, Simon Wied II Structure 1. Introduction ............................................................................................................... 2. Opportunities vs. Threats: Analysis of the environment the Robert Mondavi Company is settled in ................ 2.1 Global environment ............................................................................................ 2.2 The US wine industry – an overview ................................................................. 2.3 Competitive forces in the US wine industry ...................................................... 2.3.1 Potential entrants ....................................................................................... 2.3.2 Bargaining power of buyers ...................................................................... 2.3.3 Bargaining power of suppliers .................................................................. 2.3.4 Closeness of substitutes to the industry’s products ................................... 2.3.5 Intensity of rivalry among...
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...Autumn 15 ROBERT MONDAVI WINE INDUSTRY Dougal POGET & Caroline MULHAUSER U N I V E R S I T Y O F A P P L I E D S C I E N C E -‐ G E N E V A H A U T E E C O L E D E G E S T I O N – G E N E V E Mondavi Wine Industry – Case Study Dougal Poget & Caroline Mulhauser TABLE DES MATIERES 1. Read, reflect on and analyze the company situation within the context of a changing wine industry. ................................................................................................................ 4 2. Think about an outline all of the external, internal, competitive, market, and consumer factors, changes and trends affecting Mondavi in their business model. 5 External factors: ......................................................................................................................................... 5 Internal factors (Integration level) ...................................................................................................... 5 Competition ..............................................
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...Country Comparison Factbook France vs. Italy Wine Industry Group 16.4 Bram van Veen Caspar Leusink Muhammad Hafidz Randy Hardja Lecturer: Mr.Drs.HenkRitsema Contents Executive Summary 3 Introduction 4 Methods and Frameworks 5 Hofstede’s cultural dimensions 5 Porter’s diamond 7 Porter’s Five Forces Model of Competition 8 Introducing the Wine Industry 9 Overview of Wine Industry 9 French Wine Industry 10 Italian Wine Industry 11 Country comparison 12 Comparison of relevant macro-economic indicators 12 General economic indicators 12 Financial Health 13 Demographic Factors 13 Historical developments 14 Historical Background 14 Global Wine Industry Developments 15 Socio-cultural conditions 17 Cultural Diversity 17 Hofstede 18 Political and Governmental Systems 19 Legal Systems 21 Financial Systems 21 Labour Market 22 Industry Conditions 24 Supply Market Conditions 24 Demand market conditions 24 Threat of New Entrants and Substitute Products 25 Major players and level of competition 27 Level of Competition 28 Recommendations 28 Italy 29 France: 31 Recommendations: 33 References 34 Executive Summary The goal of this factbook is to provide potential investors with information on relevant dimensions regarding the wine industry in Italy and France. The factbook is comparing both of the countries using methodological framework and secondary data. The data we used are obtained through various sources. In the end, Italy is presented...
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...Nicole Terry MBA 810 Mondavi Case Study The Wine Industry - Old World versus New World The wine industry has evolved throughout history and no longer does the European “old world” market dominate the industry. More recently there has been a push from what has become known as “New World” wine manufacturers to capture more of the market share. As new companies enter into this market and the wine industry as a whole shifts the question remains, is the “New World” approach structurally stable enough to sustain growth and shift the industry from what we know as the traditional or “Old World” thinking? This case analysis will make a comparison between the “old and new world” within the wine industry and also use the five force model to analysis the structural soundness of the “new world” approach within the global wine industry. To compare the Old World to the New World in the wine industry it is best to look at the strengths and weaknesses of both segments. The Old World wine industry has years of experience to build on, an unique ability to cater to those who enjoy consuming wine that is handpicked, authentic to Europe and specific to certain regions. Strengths for the “old world” include first in industry with a consumer base already built up. Old World has no governmental regulations on the distribution process but government does play a role in the processing of their wine and this regulation creates a major weaknesses in comparison to the “new world”. The New...
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...Statement 3 The Product 3 Consumer Product Classification 3 Target Market 3 Competitive Situation Analysis 4 Analysis of Competition using Porter’s 5 Forces Model 4 SWOT Analysis 4 Strengths 5 Weaknesses 5 Opportunities 5 Threats 6 Market Objectives 6 Product Objective 6 Price Objective 6 Place Objective 6 Promotion Objective 7 Marketing Strategies 7 Product Strategies 7 Price Strategies 7 Place Strategies 7 Promotion Strategies 7 Tactics and Action Plan 8 Product Action Plan 8 Price Action Plan 8 Place Action Plan 8 Promotion Action Plan 8 Monitoring Procedures 9 Introduction This three-year marketing plan has been created for Company G, a well-established, highly regarded electronics manufacturer with a well recognized logo and brand, XG. As part of new line of small appliances, Company G has brought their expertise using a team of engineers and designers to develop an Electric Wine Opener for at home use like no other that is currently on the market. It not only demonstrates high quality craftsmanship and elegance, but could be the most reliable product available in the industry. Mission Statement “We enable consumers to improve the quality and convenience of their lives by providing innovative electronics solutions.” The Product Company G’s new Electronic Wine Opener combines a multitude of innovative design features and materials together in a small package that can be conveniently stored on a countertop or tucked...
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...EC-722 Industry Analysis: The Five Forces Cole Ehmke, Joan Fulton, and Jay Akridge Department of Agricultural Economics Kathleen Erickson, Erickson Communications Sally Linton Department of Food Science Overview Assessing Your Marketplace The economic structure of an industry is not an accident. Its complexities are the result of long-term social trends and economic forces. But its effects on you as a business manager are immediate because it determines the competitive rules and strategies you are likely to use. Learning about that structure will provide essential insight for your business strategy. Michael Porter has identified five forces that are widely used to assess the structure of any industry. Porter’s five forces are the: • Bargaining power of suppliers, • Bargaining power of buyers, • Threat of new entrants, • Threat of substitutes, and • Rivalry among competitors. Together, the strength of the five forces determines the profit potential in an industry by influencing the prices, costs, and required investments of businesses—the elements of return on investment. Stronger forces are associated with a more challenging business environment. To identify the important structural features of your industry via the five forces, you conduct an industry analysis that answers the question, “What are the key factors for competitive success?” Audience: Business managers seeking to assess the nature of their marketplace Content: Presents five forces that influence...
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...Case 9 Beer and Wine Industries: Bartles & JaymesTeaching Notes Copyright © Gareth R. Jones, 1994SynopsisThis case is about a new industry—the wine cooler industry—and the manner in which Bartles &Jaymes, a subsidiary of Gallo Wines, became the market leader. It links the industry environment to organizational strategy and shows how competition develops in a new industry. It points out that a distinctive competence (e.g., marketing and distribution) leads to competitive advantage. It demonstrates the importance of using distinctive competences to manage the organizational environment and allows for an evaluation of Bartles & Jaymes’s strategy. The case considers how Gallo Company manages its environment and strategy as the leading wine company in the United States. Teaching Objectives * 1. To analyze the organizational environment. * 2. To show how new industries through new products and how environmental competition changes. * 3. To illustrate the importance of developing a distinctive competence to compete in an industry * .4. To demonstrate how strategy develops from a distinctive competence and how firms use their strengths to manage the industry environment. * 5. To show how vertical integration helps defend competitive advantage and manage the environment. This case offers insights into many organization-environment issues It shows how a strategy evolved into a new industry. Gallo Brothers introduced a new product—a wine cooler—through a...
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...Apr 5, 2016, 5:02 PM From Me Details The American wine industry is a stable and present market in the United States with room to grow. The wine industry began with the first settlers and has persevered for centuries. There are three classifications of wine: Red, White, and Blush, and table wine (a wine containing 7% to14% alcohol traditionally consumed with food) is the most popular and fastest-growing type of wine consumed. Even though wine is produced virtually everywhere in the U.S. the wine producers in California have the largest economic impact of $30 billion. Wine sales have risen in the last ten years from 11.7 billion dollars to 19 billion dollars. The Alcohol, Tobacco, and Firearms division of the Internal Revenue Service, at 8%, which is around $1.07 per gallon, heavily taxes these sales. Technological impacts have allowed winemakers to help control the quality of the wine from the vine to the liquor store. The wine industry contains high barriers to entry due to high costs of land and building manufacturing facilities. Product differentiation is quite vast, being able to make several different types of wine varieties. The value of the wine varies year to year and is often set by the opinions of a few wine experts. The economies of scale in the wine industry have the greatest impact on the cost of land for grape growing. This because the type of land needed to produce quality wine is limited in the United States. This provides an advantage to existing wine producers...
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...The global wine industry is divided in two areas, which are the Old World Countries and the New World Countries. The Old World countries are those located in Europe, while the New World Countries are Australia, United States, Chile, and South Africa. During the past few decades, global consumption of wine had been increasing. While the demand of premium wines was increasing, the consumption of inexpensive wine was decreasing. In Europe, families owned small vineyards and most of them produced wine for their own consumption. On the other hand, in the New World, larger firms owned wineries and competition was strong. I will use Porter’s Five Forces to analyze the global wine industry. Threat of New Entrants: Low; Entry Barriers: High (-) I would say that in the global wine industry, the threat of new entrants is low and the barriers to entry are high. This is due to the fact that the acquisition of new land and labor to produce wine requires a large amount of capital. Known brands spend a large amount of money on technology, innovation, and advertising, so it would be hard for independent wineries to start their own production, especially in New World countries and be profitable. Additionally, price per acre in the United States is really high, and a new piece of land takes several years to produce revenue. Also, the wine industry is already a mature one and consumers have their preferred brands of high quality wine, therefore obtaining a large share in the market would...
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...factors and non-key or general use factors. Skilled human resource, infrastructure and capital resources are the key factors which significantly cause businesses to gain competitive advantage in a particular industry. Moreover, knowledge resources, raw material, unskilled labour force are the non-key factors. Last reported number of total labour force in Chile is 8,037,177 (Trading economies (2013). Nevertheless, skills, abilities and cost of the labour force are factors which significantly affect to development of competitive advantage (REF). Education systems in Chile are not stronger as other developed countries in the world. Nevertheless, it has achieved major improvements in recent years due to the improvements of government funding (4.2% from GDP). Word bank figures (2012) indicate that 49.1% of Chilean labour force is with secondary education and 25.2% are with tertiary education. Moreover, literacy level of aged between 15-24 years olds has increased to 99% (UNISEF, 2013). Chile can be identified as a high income country (World Bank, 2013) and its labour costs of Chile ranks XX which is fairly higher than the other countries in the region. In addition, unemployment rate is 5.7%. Level of infrastructure is strong in Chile is vital to development of Chilean wine industry. World Bank indicators (2013) demonstrate strong railway (, air transport (97433 registered carrier departures) and road systems ( in Chile. Moreover, access to fresh water is raked in XX due to positive weather...
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