Executive Summary
Cooper’s Creek wine is a fine New Zealand export which is seeking to expand further into Asia. Three countries were chosen based on their markets, policies and importing needs for wine. The countries were analyzed based on various economic standpoints, current political situations and growth potential. The data collected has shown one country to lead the rest in major market segments as well as in advertising and distribution channels. Cooper’s Creek is to be imported to, distributed throughout and sold in South Korea.
3 Country Analysis
The three countries that were chosen to be analyzed had to meet specific political, economic, social and technological criteria. The selection process sought after politically free and
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To summarize, group 3 decided on the four best options for exporting, which made the ultimate choice a bit more difficult, yet even further compelling us to question what guarantees we had in Asia. Our selections came closest to these standards
South Korea was a initial choice because it is one of the “Asian Tigers”. This means that the small country of South Korea has a driving Asian economy , based on technology as well as tradition. To put South Korea into a global perspective of power ranking it is the 3rd largest power in Asia, according to IMF 2007 statistics, 12th largest economy in the world, is in the top 10 exporters in the world and is 6th for both foreign exchange reserve and as an arms force, worldwide. That is a lot of punch packed into one precarious peninsula.
When choosing the next country for analysis, India was selected as it seemly has an incredibly expansive customer base, large terriory and population as well a a well known service sector for international companies, especially teleservice callcenters . These factors made India an obvious choice, considering that Cooper’s Creek is already present in China, by way of Taiwan. It is a quickly developing nation, even in the wine sector. The pockets of prosperity were not enough to ensure a stable market entry, although long term growth potential will be remarkable.
The winery industry can be categorized into red and white wine segments. The red wine segment, measured by tonnage of varietals crushed, has grown at a compounded annual rate of 4.7% for 10 years from 1989 to 1998, and a year over year growth rate of 8.2% from 1998 to 1999. Judging by the strong growth rate experienced in the red wine segment, it is reasonable to conclude that the red wine segment is in the growth phase of the life cycle model. In addition, production of red wine varietals which are relatively unknown such as syrah and sangiovese nearly doubled in a year from 1998 to 1999. The white wine segment, however, is at the mature phase of its life cycle as the segment shrunk slightly by 0.42% from 1998 to 1999. Overall, the industry is still at the growth stage lead by growth in the red wine segment.
The structure of the wine industry is quite different around the world. The barrier to entry is relatively higher in the New World than in the Old World. Referring to the market data on the level of concentration in 1998, people can see a few players dominate the markets in Australia and the U.S. while the level of concentration is quite low in Europe. Therefore, the rivalry in Old World is intense there.
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