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The Australian winemaking industry is at the mature stage of its life cycle. The domestic consumption has shown a low average growth rate of 1.4% pa. As the exports has been a significant component of total sales (60.7% of total sales of table wine in 2009), the
|language || ||english
|wordcount || ||5529 (cca 15 pages)
|contextual quality || ||N/A
|language level || ||N/A
|price || ||free
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Preview of the essay: wine
What type of organisation is Schultz Wines? Schultz Wines is a family-owned company, listed on Australian Stock Exchange 1992. It was founded in 1840s by Barossa Valley and has been run by a fifth generation winemaker, Frederich (Fred) Schultz. What industry, product segments/markets does Schultz Wines operate in? Schultz is the 8th winemaking company in Australia and producing only high quality premium wines for domestic and export sales. What is the current life-cycle position of the industry? The Australian winemaking industry is at the mature stage of its life cycle. The domestic consumption has shown a low average growth rate of 1.4% pa. As the exports has been a significant component of total sales (60.7% of total sales of table wine in 2009), the low consumption rates of the main traditional wine drinking nations like France, Italy and Portugal (with average growth rate declined by 2.7%, 2.1% and 14.5% respectively as shown in Table 7) and with the consumption in both France and Italy is shrinking by about 1% per year, it indicates that the industry is approaching to mature stage of its life cycle. The experiences of domestic consumption growth, increasing numbers of wine brands and ...
... competitors. On this basis, Market penetration and product development may assist Schulz in maintaining a strategic advantage. However, to create long-term strategic advantage, Schultz really needs to look to expansion options that ensure strong growth and profitability. On this basis, expansion of exports to India will provide a good foundation upon wihich tese targets can be achieved, as will diversification in general. However, it is vital that the risk attached to such options is carefully considered by Schultz before embarking on these options. They will significantly change the underlying business model of Schutlz, increasing the level of complexity and uncertainty assoicated with revenue streams generated from new products and markets. In order to successfully integrate such expansion into the existing business, Schutlz wines must ensure that risk management become an essential component of the business planning cycle, with contingency plans developed to deal with unfavourable outcomes should be arise *******Rumelt’s criteria***** What was the rationale for the acquisition from both Schultz wine’s and Stefano Wines? Acquisition factor: Growth Schultz wines’ goals: - To be the Australia’s most prestigious winemaker and be in the top five wine companies in Australia. - Expansion into
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