...Wine Economics The wine industry in Australia is one of its biggest assets. In a short period of time, this industry has grown to produce top qualities of wine, making Australia one of the top ten wine producing countries in the world. The climate of Australia too is suitable for various types of grapes and Australia is one of the few countries that produce every type of major wine varieties. The wine industry in Australia is not only popular, but has also become a part of Australia's culture. [http://www.cultureandrecreation.gov.au/articles/wine/]. Australia has a least of 8 major wine regions and a lot of other small wineries all over the country. The famous ones being Adelaide wine region, Margaret River and Tamar valley which produce good quality wines like Shiraz, Cabernet Sauvignon, Chardonnay, Merlot, Semillon, Pinot Noir, Riesling, and Sauvignon Blanc to name a few. The wine industry and the tourism industry go hand in hand. The wine industry is not only profitable as itself but also gives a nice boost to the tourism industry in Australia. Wine festivals, among which the biennial tasting Australia is the largest, draw many internal as well as international tourists. [http://www.dfat.gov.au/facts/wine.html], [http://www.youtube.com/watch?v=r6AjDVfMnjY&feature=related] [http://en.wikipedia.org/wiki/Australian_wine] The wine industry was growing at 9%p.a. with a market worth of 2.8 billion Australian dollars in the year 2007. Australia accounted for 17%...
Words: 2105 - Pages: 9
...Fine Wine Market Outlook 2012 Contents Introduction Methodology The Fine Wine Market in 2012: Challenges and opportunities Survey findings 5 6 7 10 PROFESSIONALS’ WINE NETWORKING Connecting professionals with a shared interest in wine In your city, and around the world With colleagues in the sectors that matter to you Few things form stronger bonds between people than a shared passion for wine. Whether you’re an experienced wine collector or just embarking on wine discovery, we can help power your networking by connecting you with like-minded professionals, in the elds you tell us are relevant to your business and career. The service is free, private, and condential. Simply register your interest at www.wineyields.com, and we’ll contact you privately to set up introductions with complimentary professionals who’d like to share a glass or two. A free reader service, from Wine Yields F INE WINE INVESTMENT SPECIALISTS Best prices for fine wine We have an excellent reputation as advisors on investment grade wines; we trade in them on a daily basis and so are well placed to recommend what and when to buy and sell. We supply the trade and private collectors at the same highly competitive prices. We charge no management or performance fees. • Top prices paid for your wine • Highly regarded fine wine blog • Professional storage available Pantone PMS 273 • Daily fine wine news and extensive news library Pantone 273 Cmyk Suite 5, Claremont House, 22 Claremont...
Words: 10894 - Pages: 44
...The Wine Industry and Vincor Vincor International Inc. is in the business of selling premium wine to discerning wine drinkers. The company relies on its firm resources and capabilities from which it derives its distinctive competencies. These include the ability to produce market and distribute premium New World wines to a growing market of customers around the world. The total estimated world market is worth approximately $190 billion dollars (U.S.). Vincor’s strategy is based on its distinctive competencies (such as world renowned wine making experience, vineyard development and ownership, and the ice wine product/brand) and centres on an acquisition and takeover formula (sometimes with a joint venture component). The company believes that in a highly fragmented wine industry the only companies that are going to survive, grow and maintain a competitive advantage are those that can rationalize their cost structures, achieve economies of scale and control their distribution channels effectively. Synergies in marketing, sales forces, administration and other overhead factors can drive down per unit costs and make Vincor more efficient. By lowering its cost structure, Vincor can pass lower costs to consumers and gain market share in a global market place. Vincor has surmised that the best way to do this is expand, through a combination of equity and debt financing to take over competitors, whenever there is a good “strategic fit.” The industry in which Vincor operates...
Words: 1672 - Pages: 7
...archive of this journal is available at www.emeraldinsight.com/0957-4093.htm Effectiveness and efficiency: the role of demand chain management David Walters University of Western Sydney, Parramatta, Australia Abstract Purpose – The paper aims to focus on and discuss the differences between the demand chain led organization and the supply chain led organization. Design/methodology/approach – The paper uses a desk-based approach to data collection and provides analysis and discussion of the issues. Findings – The paper finds that the differences between the demand chain led organization and the supply chain led organization are ones of emphasis. Supply management is cost-led and attempts to provide an adequate level of service. By contrast the demand chain approach is a broader view of relationship management taking a view that the two overlap and that effective management is to integrate the two. Originality/value – The paper focuses on the increasing importance of demand chain and supply chain management decisions. Keywords Supply chain management, Cost effectiveness Paper type Research paper The role of demand chain management 75 A glance at today’s financial pages suggests that it is those firms that consistently and persistently manage their cost structures that are seen as the achievers. There also appears to be a popular notion that an effective supply chain alone will ensure adequate customer satisfaction through reducing costs, and therefore, prices. At the same time...
Words: 8252 - Pages: 34
...Marketing Mix Marketing: the process of conceiving ideas, products and services which are attractive to customers. Goal is to avoid pure competition Target market: group of likely consumers for product and service. Attract them with good marketing mix Marketing mix: shaping the combination of the product and approach to maximize customer value Predict tastes and preferences Attempt to understand human behavior- perception shape behavior, learned behavior over time creates expectations Factors influencing decision: culture, personal preference, economic, time available, life style Cast study: starbucks switching from competitive item to non competitive differentiated product Monopolistic competition structure: Many buyers, few large seller with complete product offering Information about product is no longer complete Sellers now offer very different products Market is not influences by one single buyer or seller Resources are free to move, ease of entry and exit How to find potential customer: segmentation Geographic- city or rural, Europe or middle east. Regional foods ex: Walmart: did it in a small town to avoid competition Demographic – age sex income education tech savvy look for major shifts Psychographic- life style, personality ex: goth Behavior- usage, loyalty, repeat purchase activity: ex: wegmans card Direct your product efforts to a particular segment rather than whole market ...
Words: 2854 - Pages: 12
...BLUE OCEAN STRATEGY With Supply outpacing Demand in more and more industries each day, today companies find themselves competing for a share of the contracting markets. The question looming large is whether businesses ought to address competition as their main issue or direct their focus elsewhere? While the “five forces” analysis lays emphasis on outperforming competition in order to capture greater share of the existing demand, Blue Ocean Strategy belies competition and believes in creating uncontested market space. The recent pace of innovation and change has only paved way for a strategy that is more dynamic than the classical theories of five forces. Porter’s five forces aimed at beating the existing competition, denoted as Red Ocean, in a known market space where the rules of the game are known and boundaries are defined and accepted. But as the market gets crowded, profits and growth take a dive, and competition turns cutthroat making the red ocean bloody. Contrarily, Blue oceans denote uncharted, untapped and unknown market space, demanding innovation and providing opportunity for highly profitable growth. Though some blue oceans are created beyond existing industry boundaries, most blue oceans take shape from within red oceans by expanding existing boundaries. Looking at businesses, past and present, we find that blue oceans have always existed, only the term is new. A hundred years ago, many industries that are quintessential today, such as, health care, automobiles...
Words: 1123 - Pages: 5
...Question 1.1: Explain how a change in the demand or supply affects the equilibrium price and quantity in any market. What is “demand”? Demand is the outcome of decisions about which wants to satisfy, given the available means. If you demand something (in the economic sense), it means that you intend to buy it and that you have the means (the purchasing power) to do so. In simple terms, when we talk about demand we are referring to the quantities of goods or services that the potential buyers are willing and able to buy. The law of demand states that if all other factors remain equal, the higher the price of a good, the less people will demand that good. Simply, the higher the price, the lower the quantity demand. Chart 1 above was downloaded from “www.investopedia.com/university/economics/economics3.asp” Point A,B,C clearly shows a negative demand relationship. As the price increases, the lower the quantity demanded. What is “supply”? Mohr et al (197:2004) defines supply “as the quantities of a good or service that producers plan to sell for a possible price during a certain period.” Producers must be able to supply the quantities concerned although there is no guarantee that the quantity supplied will be actually sold. The quantity sold will depend on the demand for the product or service. The greater the demand, the greater the quantity sold. Chart 2 above was downloaded from “www.investopedia.com/university/economics/economics3.asp” Points A,B,C clearly...
Words: 4197 - Pages: 17
...Table of Content ........................................................................................................................ 1 Executive Summary...................................................................................................................2 1 Company Analysis.................................................................................................................. 3 1.1 The Company...................................................................................................................3 1.1.1 Brand Image..............................................................................................................3 1.1.2 Human Resource Management.................................................................................3 1.1.3 Corporate Social Responsibility (CSR)....................................................................3 1.2 Organizational Structure..................................................................................................4 1.2.1 Internal Analysis.......................................................................................................4 1.2.2 Production and Product Categories .......................................................................... 4 1.2.3 Target Market Profile ............................................................................................... 5 1.2.4 International Involvement...............................................................
Words: 7973 - Pages: 32
...technical/conceptual skills a person needs to satisfactorily perform the job. French service: Food is brought for preparation from the kitchen by the commis in a partially or non-prepared state so the tableside preparation is to finish the food. American service: Food is plated and garnished in the kitchen onto the dishes to be places at the guest’s table. 2)Approaches to Food Safety Overall responsibility for foodservice has been given to the food and Drug Administration. It provides a model ordinance that is the basis for most local health ordinances Public health license to operate a restaurant is required. For example, health officer makes an inspection. 3)Food and Wine Matching * White wine served with white meat such as turkey pork, chicken, veal, fish and seafood. * Red wine served with red meat such as beef, lamb, and duck. * Champagne can be served throughout the meal....
Words: 1352 - Pages: 6
...Dining Theatre Executive Summary The establishment of a restaurant like the Dining Theatre as a unique place where people can go there to enjoy quality food, undisputed customer service, the tasty drinks, to enjoy the themed shows and to breath in the serene 1990’s experience is a creative thought whose implementation in Brisbane will not only capture a large market share but also leave the customers satisfied and always wanting more. Following the business proposal in part A of the assignment, this paper will expound further into the details of the business. The paper will discuss particular issues on human resource, marketing and public experience, who exactly are the customers and the ideal experience, partnership and alliances, demand and capacity management, finance doing with the budgetary requirements of the start-up, the forecast and its relevant tables, legal compliance, sustainability management and then draws a conclusion. Title.....................................................................................................................................1 Executive Summary...............................................................................................................2 PART B: Human Resources 1. Director: Mark Williams....................................................................................................5 2. Marketing Manager: Jessica Douglas...............................................................................5 ...
Words: 9560 - Pages: 39
...determined wholly by the conduct of participants in that industry (including themselves), and that conduct is largely (but not completely) determined by industry structure, conduct and performance over time. Feedback loops signify the impact that performance will ultimately have on conduct ad structure (and thus in turn on performance again), and the impact that industry conduct has on structure. It also hypothesizes that external shocks, such as changes in technology or government regulation, alter industry structure, and in turn conduct and performance, over time. SCP Model Industry External shocks Producers S tructure C onduct P erformance Feedback Industry structure is determined by the economics of demand and supply in the industry, as well as by “ industry chain economics” which represents the , inherent bargaining of customers, producers, and suppliers in the industry, and the sources of this power (e.g., vertical or information market failures). Conduct is characterized by strategic decision competitors in the industry make given industry structure and performance. Examples include marketing, capacity, vertical integration, operations, and management control decisions. Performance may be measured on numerous axes, including financial performance, technological progress, and job creation. There are three main drivers of external shocks to the industry: technology breakthroughs, changes in government...
Words: 1300 - Pages: 6
...CASE: GLOBAL WINE WARS (A) Question 1 During the last decades, some remarkable evolutions of the global wine industry have dramatically influenced the base of the industry structure, with technological update, innovation, and new players coming in, the wine market as well as the competition within this market have come to a new dimension. In the following, we will analyze briefly the main points of this evolution and group those points into several categories. Change on the demand side ‐ Demand went down in the traditional market. There is a huge geographic shift in demand from the traditional highest-consumption countries like France, Germany, and Italy to the new markets in countries like the USA and Australia. In addition, there is a great growth in demand in wineimporting countries such as the UK, Belgium and Sweden. Growth in some Asian countries such as South Korea, China, and Japan was remarkable during the last decades of the century. ‐ On the consumer part, their preferences shift towards quality of products. There is a trend towards drinking more premium wine with a high quality instead of drinking simply table wine. The trend towards higher price categories is worldwide, and this reflects the change in the demand pattern in the wine industry. Furthermore, the demand is more fashion inspired. Together with the shift to quality this caused a wider fluctuation in demand. The consumer has now the preference of drinking more red wine due to health concerns and an emphasis...
Words: 2181 - Pages: 9
...Market size The U.S Wine market has been claimed as the largest market in the world by Wine Institute representative and CEO Robert P. This industry is highly fragmented and relatively large with a total of $17 billion in revenue as of 2014. There are currently about 1,800 established wineries in the nation, with half of these located in California. Wine sales from all distributers in the U.S have seen a record increase in their sales of 9- liter cases totaling 360.1 million worth $34.6 billion. 58% of those sales were attributed to California, the leading wine producing state in the nation. California had a total of 250.2 million cases distributed worldwide. 90% of the industries revenue comes from California. The other top wine producers are located in new york, Oregon, and Washington. Domestic demand for U.S wine was recorded as $21, 619.1 million in 2014 with a per capita alcohol consumption of 25. Our U.S wine industries have attained a substantial amount of foreign market share with exporting revenue totaling $1.610 million. Scope of rivalry Wineries have a wide competitive scope, providing goods to a highly segmented market base, across various geographic regions and demographics. There’s a high existing level of competition among wine producers. Individual wineries compete on the basis of quality, branding, prices, and diversity of products offered. Competition among wineries originates from other wineries, manufacturers, and substitutes including beer and spirits...
Words: 1234 - Pages: 5
...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...
Words: 2847 - Pages: 12
...2011-2012 State of the Wine Industry Dr. Rumack: You’d better tell the Captain we’ve got to land as soon as we can. This woman has to be gotten to a hospital. Elaine Dickinson: A hospital? What is it? Dr. Rumack: It’s a big building with patients, but that’s not important right now. The 1980 spoof classic Airplane was a critical success, well, it was if you didn’t listen to the critics, but that’s not important right now. The movie introduced us to the lighter side of long-time character actor Leslie Nielsen who played the part of Dr. Rumack. Nielsen, who passed away in November of 2010 followed that “hit” with forgettable roles in The Naked Gun series, The Scary Movie series, and Police Squad. I think we should now pause to remember just what Leslie meant to each of us … OK that’s enough. Maybe that’s not important either. Written By Rob McMillan Founder, Wine Division 707.967.1367 rmcmillan@svb.com APRIL 2011 1 The movie Airplane was about a flight where both pilots died of food poisoning. Fortunately, the plane was carrying our reluctant hero Ted Striker. A former combat pilot who had lost his mojo to fly, Ted along with his lost love interest Elaine Dickinson, together find a way to land the plane and save the day, thus triumphing over their own fears and personal tragedy. Too bad about the pilots, but that’s not important right now. What is important is Airplane is our canvas for painting a picture of the wine business this year with all of the ups and downs...
Words: 13113 - Pages: 53
