BSBMKG416A Assessment Task1 Essays

Key success factors in the winery industry include competitive pricing, high grape quality, label and blend differentiation, and diverse distribution channels.

In the world of increasingly global competition every nation want to prove its product as the best in the world. This phenomenon is called the competitive advantage of the nation, this can only be created and sustained by immense sense of product knowledge, competition domestically and internationally. Wine industry is the one which faces the competition between the traditional wine makers of the old world and the sophisticated wine producers of the New world. The healthy competition among the producers and suppliers makes the consumers successful by providing the best quality.

To help the readers understand the report I would use pie charts for each period with the different sales segments in corresponding colours.

In order to support and promote Iowa wines in the market place, the Iowa Wine Growers Association, assisted by the Midwest Grapes and Wines Industry Institute, has established the Iowa Quality Wine Consortium (IQWC). IQWC will help with consumer awareness and confidence in choosing Iowa quality wines.

Even though, the future prospects for the economic growth of China are negative but the rapid growth of the People's Republic of China, in economic terms, since the reforms of 1978 is undeniable. Chinese economy has an average Gross Domestic Product (GDP) of 9.37 per year. In addition to that, China has also become one of the major contributors in the world economy and has shown tremendous growth even in the times of recession as well. (Holz 2005)

Base on the first assessment, refer to the PESTEL and Porter’s 5 Forces analysis (Appendix 6.1), the most attractiveness in China is the point of huge increasing population which have recorded 1,370,536,875 (National Bureau of Statistics of China 2012) on 2011. And as one of the BRIC countries, China has also recorded a 7.4% of GDP growth rate in 2012 (Trading Economics 2012), which is an evidence showing China is a strong emerging market. Regard to the technology used, China has relatively lower penetration rate than the other two countries. But operating business in China has a lower cost than the other two countries, example as the labour cost.

These commodities, shown in the table, represented approximately 4.6% of China’s exports and 19.4% of imports in

Château Margaux is currently in the market of the winery. As of 2013, the global wine market was valued at generating between $60-65 billion in annual revenues. The amount of bottles being produced was estimated to be over 30 billion. The production of wine has seen a shift from being produced in the ‘’Old world’’ to an increasing production of wine in the ‘‘New world’’. This shift created an increasingly upsweep in the global production of wine which resulted in a huge supply of wine to the market. This development forced many wine producers to lower their prices in order to be able to compete in the wine market.

China introduced market reforms in the early 1980s; only a third of the economy is now directly state-controlled. Since joining the World Trade Organization in 2001, China has rapidly become an economic force, doubling its share of global manufacturing output and creating a commodity-market boom. In 2004 China became the largest exporter of information and communication technology (ICT) exports.

China is the second leading global economy and represents the world’s largest economic growth in recent years.

Since the late 1970s, China 's economic has been transformed from a closed, centrally planned economy system to a more market related system, which already in 2010 was one of the largest in the world. After that, China became the largest exporter country in the world. According to the Xiaodong Zhu (Journal of Economic

These imports included merchandise from EU companies that had relocated parts of their global production systems in China. The EU27 exported US$ 113 billion of goods to China (US$ 132.8 billion reported by China) making the EU China’s second largest source of imports (after Japan). The result was a US$ 265 billion trade deficit for the EU27. This deficit is a major source of contention between these two major trading partner.

Close to four decades ago, China’s economy was under centrally-controlled, stagnant and isolated from the global economy. Then everything changed after 1979 when the foreign trade investment and free market reform was implemented. Not long after it was implement China’s become the world 's fastest growing economy and now the largest economy in the world surpassing even United States. Today, China is focusing on a more sustainable growth pattern and implementing changes to industry and economic structure.

China is the leading and quick growing country, which has strong economy and it has a a massive number of industries in all segments.

The exceptional growth of China’s economy after opening itself to the global markets is one of the biggest examples of transformation of a Country. Within the span of 35 years, from being one of the poorest countries it emerged as the 2nd biggest economies.