...Investment Attractiveness of the Chilean Wine Industry 1. Introduction Over the past 30 years saw major transformations within the Chilean wine industry, this transformation allowed many of the talented Chilean winemakers on this unique opportunity to produce world class wine with its own unique personality and character. Chile currently is one of the leading nations in the global in the wine industry, currently ranked at 8th as the world’s largest wine producer and ranked 5th as the largest wine exporter. Chile exports a massive 70% from its own wine production making Chile the world’s most globalised wine industry. Even with the enjoyed success by the nation, Chilean wines find themselves facing huge competition globally in different markets as the wines produced in Chile sells at a relatively low average price therefor directly affecting the profit levels in return. (Emeraldinsight, 2010) 2. Factor Conditions As of 2011, Chilean vineyards have been facing shortage of filed workers as most employees are migrating to construction, agriculture director Santa Rita is quoted saying “between 15% and 20% fewer workers now than two years ago” Working in vineyards is not a preferable profession to the locals anymore as they end up working eight hours more just to get the minim wage. (MecrcoPress, 2011) This means finding field workers for the vineyards will prove difficult unless the company is prepared to pay the minimum wage. 2.1 The unemployment rates in general...
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...Chilean Wine Industry’s National Competitiveness Using Porters National Diamond. Part 1: Porters National Diamond model is used to analyse a firm’s ability to compete in a home market, their ability to compete in a foreign international market and to recognise the particular country and market within that, which a firm would be suited to expanding into. In doing so it analyses the viability of a nation to compete in any given market. The model is described by Ozlem Oz (1999) as “a dynamic system which all elements interact and reinforce each other”. The elements to which this refers are; Factor Conditions, Demand Conditions, Firm Strategy, Structure and Rivalry, and Related and Supporting Industries. These main elements are supplemented with Political and Chance factors which influence all of them. The model explains the relationship between related industries and how this helps successful development. Porter believed that a healthy competition would drive the firms to be innovative. With a competitive market, people have more choice and this provides great market research availability to find out what people want. Fig.1, Michael Porter, Porter’s National Diamond (1990) Throughout this report an analysis of the Chilean wine industry’s competitiveness at an international level will be carried out. Care will also be taken when considering how well the company in question will be suited to expanding into this market. The diagram above, figure 1, displays...
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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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...Part One: The Chile Wine Industry The Chilean wine industry has experienced various transformations over the past 30 years – its quality revolution led by the complete technological renovation during the 1980s, the export boom of the 1990s, and the new terror developments during the 2000 decade. This transformation has allowed a new generation of talented viticulturists and winemakers to capitalize on Chile’s viticultural paradise and to produce World Class Wines of unique character and personality. Chile is the world’s eighth largest wine producer and the fifth largest exporter, reaching a market share of 8% by volume of the global international wine market at the close of 2010. However, and most importantly, Chile exports 70% of its wine production, making it the world’s most globalized wine industry, with great flexibility, innovation and a long-term commitment to quality and service. With 150 destination countries and 1.5 billion consumers for each year, Chilean wines are positioned as the country’s most emblematic and best known world ambassador. In the late 1970s and early 1980s, Chileans adopted advanced technology and invested in new machinery for optimizing the winemaking process in the field. The winemaker offered an innovative higher-quality product that was conducive to the development of new wine varieties. Later producers also perfected their wine cellars and invested in better labels and packing, such as boxes, bottles and cartons, that were more attractive to...
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...1. (a) Because the Chilean wine industry, as a whole, has achieved a good reputation as being a “value for money” or a low cost alternative to more traditional, old-world wines (subsequently positioned at the low end of the fine-wine cost range), the country-of-origin effect has made it difficult for smaller, boutique wineries, such as MontGras, from being able to fully control its own market position and produce and sell higher-quality wines at premium prices. However, although the country-of-origin effect has a large influence on shaping consumers’ general perceptions on wines from Chile, MontGras can use the effect to differentiate and reposition its brand in order to control its own market position. Moreover, as stated in the case, consumption of high-quality wine brands is steadily increasing, while the consumption of more traditional lower quality brands has significantly fallen (6). The perception of Chilean wine being a low-price alternative was developed by the increase in exports of bulk wines with competition based on price. This exports in bulk strategy, which led to the perception or country-of-origin effect does not align with MontGras’ goal to produce and export high quality wines and not compete against the larger Chilean wineries. Therefore, the country-of-origin effect also allows MontGras’ the opportunity to differentiate its brand identity based on exporting higher quality wines at premium prices. The implementation of a differentiation product strategy...
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...Field Study – Chilean Wine Industry Chile country analysis 1. Country Profile: i. Population: 16,634,603. About 90% of them are classified as white people and mestizos. ii. Currency: Chilean Peso (CLP). Current spot rate: 0.001924 USD/CLP iii. GDP: Its estimate GDP for 2013 is $285.703 billion (38th in the world ranking). It had been growing constantly since 1997 until 2009 (global crisis). Adjusting it at PPP (reflects real purchasing power) it rises to $341.914 billion (43rd in the world ranking). iv. Income distribution: Since July 2013, Chile is considered a high-income economy. The percentage of Chileans beyond the poverty line was only 11.5% back in 2009. In addition, 64% of the population benefits from government welfare programs, which include poor people and those in risk of becoming poor. Nevertheless, the income distribution is still far from being equal, as shown by the GINI Index of 0.503 (2011). This index hasn’t varied much for the past 20 years. v. Approach to International Trade: Since early decades after independence, Chile has always had active involvement in international affairs. Consistent economic policies since the 1980’s have contributed to a steady economic growth, much of it thanks to its international trade. It currently has the highest degree of economic freedom in South America (7th in the world). In the past 15 years Chile has also signed free trade agreements with more than 10 countries (including Japan,...
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...Chilean Coal Miners Troy J. Tassin BCO/M 275 April 11, 2013 JOHN K. TROUT III Chilean Coal Miners Today there has been a terrible accident in one of its copper mines of San Jose, Chile, there has been a cave in. There said to be 33 miners trapped 2,050 feet below ground. Officials of rescue party were notified immediately and have started drilling holes to insure the miners would have fresh air, food and water. There was a new communication system put in place and that all the miners were using. It was a positive sign when asked if the miners were okay, they said they are a bit hungry and wanted toothbrushes. The miners know it was going to be a long time before they were to out of the mine. As the days when on, the Minera San Esteban Primera Company has giving up dates of what is going on to the families and the public. The Minera San Esteban Primera Company has sent out thoughts and prayers the families of the coal miners letting them know that they are doing everything they can to save everyone. Minera San Esteban Primera Company will not rest or give up any hope and efforts in locating and saving the 33 miners. • What would be the potential needs of the families of the miners in receiving a message about this incident? What would the family would be knowledge of safety and knowing that there is a plan in place to save the family members. Having support for the grieving families. • What would be the potential needs of the company’s employees when receiving a...
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...Introduction The month of September coincides with the onset of the spring season in Chile. And with it comes Chile’s most celebrated festival – even more than Christmas – Fiestas Patrias. Literally meaning “Patriotic parties”, Chileans gather in large numbers to celebrate their country, culture, independence and all things Chilean. Fiestas Patrias Within Chile the Fiestas Patrias are often referred to as the Dieciocho, or "18th" because the celebration occurs on September 18. Unofficially, the celebration can last for around a week. For days before and after September 18, the Dieciocho, the country celebrates with parades, festivities, drinking, dancing, eating traditional Chilean food, music. And so on. “ The Fiestas Patrias of Chile consists of two days: * September 18,known as the “Independence Day” in commemoration of the proclamation of the First Governing Body of 1810, and marking the beginning of the Chilean independence process. * September 19, known as the "Day of the Glories of the Army". “ [Source: Wikipedia.org] Celebrations Chileans celebrate their independence with great fanfare and exuberance. Large shelters called ramadas, which have a dance floor and are generally open-air, are constructed and this is where Chileans gather to drink, sing and dance. These ramadas have food...
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...Knowing Your Audience Paper and Communication Release “Over 30 Workers Trapped After Chilean Copper Mine Collapse” article By Cindy Lynn Press Release for the families and Public Sad news today for Chilean people we have had a terrible ordeal that just happen: 33 miners are trapped 2,300 feet underground. The buried men, who became known as "Los 33" ("The 33"), were trapped 700 meters (2,300 ft) underground and about 5 kilometers (3 mi) from the mine's entrance via spiraling underground service ramps. The mixed crew of experienced miners and technical support personnel, with less experience working underground, The group has been trapped since Aug. 5. Manalich told AFP that the miners, who are the government was taking steps — from getting doses of anti-depressants for the men to sending down fresh clothes and games — to help keep them physically and mentally fit for the grueling wait ahead. The government has asked NASA and Chile's submarine fleet for tips on survival in extreme, confined conditions, and are looking to send them space mission-like rations. "We hope to define a secure area where they can establish various places — one for resting and sleeping, one for diversion, one for food, another for work," Manalich said. Since then, the miners have been receiving food, water and medicine through three bore-holes. Geologists and engineers are working to open a rescue shaft to the workers, but the government has said it could take up to four months to drill...
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...(a) To what extent can MontGras control its own market position, as opposed to being dominated 7by the country-of-origin effect, and be perceived as a “Chilean Wine”? Changing the overall image of its companies wines are added to its market positioning strategy. Even though the branding as a Chilean Wine is easily applied onto MontGras, there are many factors in its control which can make sure that the company dominates the market by having a bigger share as it wants to. MontGras though being smaller than some Chilean wineries, it has been able to stand out due to its interest in high quality wines. The company wants to establish itself as the ‘low price yet high quality’ provider of wines. This is directly related to the seeds, the soil and the production methods. The company was able to affirm that its resources are on par with other high class wineries in one way or the other. Fortunately, studies also show an increase in the number of consumers for the higher quality wines (Reserva) and a minor decline in the demand for the lesser quality (Varietal) wines. The marketing has to be different for every region. Most people with very little information about wines conveniently relate price with quality. Chilean wines thereby being priced lower than other brands were inevitably being considered not so superior in quality. Since that is not the case, MontGras is trying to change its current reputation. It wants to emphasise on its higher end wines such as the Reservas and the...
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...Kandace H BCOM/275 29 May 2012 Knowing Your Audience Paper and Communication Release Knowing Your Audience Paper and Communication Release On Aug. 5, 2010, a gold and copper mine near the northern city of Copiapó, Chile caved in, trapping 33 miners in a chamber about 2,300 feet below the surface. For 17 days, there was no word on their fate. As the days passed, Chileans grew increasingly skeptical that any of the miners had survived. But when a small bore hole reached the miners’ refuge, they sent up a message telling rescuers they were still alive. From the beginning of this tragic event communication needs to be designed from the bottom up (figuratively). It is important to inform and communicate with the team of rescue workers, medical personnel, technicians and mining experts, journalist, family members and the trapped miners. Taking into consideration there are different roles and different people in the audience, the potential needs of each receiving the information is considerably different. With the team of rescue workers, medical personnel, technicians, and mining experts there is going to be a more direct method of receiving a message. Knowing their job and position direct communication is what they rely on to get the trapped miners out. The trapped miners are also going to need a direct method of receiving information but in a more sensitive way. Letting them know that help is on the way, trying to stay calm, involving them and keeping them motivated...
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...Research additional articles and information about the Chilean mine collapse. TITLE: What was the incident that took place? Communication will always come in different forms when dealing with certain situations and the parties receiving the communication. Over 30 workers were trapped after a Chilean copper mine collapsed in 2010. According to "Chile Mining Accident (2010)" (2013), On Aug. 5, 2010, a gold and copper mine near the northern city of Copiapó, Chile caved in, trapping 33 miners in a chamber about 2,300 feet below the surface. For 17 days, there was no word on their fate. As the days passed, Chileans grew increasingly skeptical that any of the miners had survived — let alone all of them. But when a small bore hole reached the miners’ refuge, they sent up a message telling rescuers they were still alive (para. Background). The families of these workers and the news release to society and the other employees of the company would have been told in different communication styles. How we communicate to people will fluctuate depending on the roles of the individual or group and the act that has occurred or will occur. PARAGRAPH III: What would be the potential needs of the families of the miners in receiving a message about this incident? One communication should be directed to the families of the trapped miners PARAGRAPH IV: What would be the potential needs of the company’s employees when receiving a message about this incident? One communication...
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...U.K, which is strategically a worth move according to the rate of Chilean wines that are being exported to different countries. It’s worth noting that U.K is not in the top ten lists of wine production in the world but they are in number one in importing wine. * U.S is a strategic market for wine consumption and importation but U.S also produce large amount of wine followed by France and European countries. Moreover, it expensive to distribute wines in the U.S market. Therefore, MontGras decision of exporting 4% volume of wine to U.S is economically a fair deal. * In terms of marketing budget, MontGras had spend high price for marketing in Ireland but it only sold 42,000 cases but in U.K they spend $5000 lesser than Ireland but sold almost 117,000 cases, which is 75,000 more cases sold. * Therefore, MontGras marketing strategy is flawlessly a well suitable strategy to reach, segment and brand to the main wine consumers. B. MontGras Actually positioned in an attractive segment * They have been working towards reaching consumers under their own label and achieved during 2000. * MontGras set their goals in the basis of number of cases to be sold for long term and beyond volume goals, they are strategically focused on the value of wine they offer. * A strategic decision they have made is to carry only reserve lines in U.K. Thus pushed MontGras to be one of the top ten Chilean wine in U.K * MontGras also won the gold...
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...Abstract Chilean miners trapped in a mine for 69 days were the longest rescue attempt ever. The help and support of the Chilean people, government, employee workers and family members were so supportive of each other; they showed a united front that helped this rescue attempt to go much smoother. For Chilean miners would this be enough support to help those that are sick to find the strength to hold on so that they reacquaint with their love ones. Will the drilling company be able to produce a drill that will be able to go down that deep and rescue the miners? Will it take them three or four months to drill a hole before the miners are free? Thirty-Three Chilean workers trapped in a mine Thirty-three Chilean miners trapped in a mine in San Jose under Atacama Desert with very little oxygen, food and water. All thirty-three miners were underground for 17 days before their first contact from the outside world. Codelco mining company is a state owned company in Chile, that was in charge to drill three small bore holes into the ground which was the first break through to reach the workers, allowing the rescuers to be able to communicate with them and send them food and medicine. The companies plan was to bore a rescue hole that would pull the miners up from 2,300 feet of the earth. First, they have to drill a pilot hole in the earth that is similar to a borehole. This would make the hole wide enough to establish some form...
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...Feasibility Analysis: Chilean Subsidiary Matthew Dommer Cornerstone University Introduction GMS Inc. is a privately held manufacturer of premium outdoor apparel based in the United States. At present, corporate headquarters and the company’s sole 80,000 square foot manufacturing facility are located in Charleston, South Carolina due to shipping port access and the state’s right-to-work status. Raw fabrics are purchased from international vendors and US suppliers and include nylon/natural weaves, Gortex, manufactured high efficiency liners, and down fillers. GMS products are sold through upscale retail outlets generally specializing in performance outdoor apparel used in alpine skiing. Annual sales are at 100,000 units per year with gross revenue of $20,000,000. Total current employees are 100. GMS has developed plans for a new line of outer apparel utilizing a liner made from an Alpaca premium long fiber weave with a Gortex laminate. Alpaca was chosen for its superiority to wool and other natural fibers. It has higher durability, softness, water repellency, and broader thermal properties than wool. It is flexible at very cold temperatures, has inherent stretch for mobility, retains thermal properties when wet, and is hypoallergenic. It is therefore better suited to this intended purpose than most manufactured fibers. As a renewable resource and biodegradable product, alpaca fiber is consistent with GMS environmental policies and offers the opportunity to...
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