Essay on Industry Analysis Report the Australian Wine Industry

1947 Words Feb 23rd, 2012 8 Pages
INDUSTRY ANALYSIS REPORT

THE AUSTRALIAN WINE INDUSTRY

‘The Boutique Producer’

by

4 students (anonymous)

Executive Summary

This report provides an overview of the Australian Wine Industry using Porter’s Five Forces industry analysis framework and seeks to provide recommendations based on the impact of the forces for a start up boutique producer.

Through the use of Porters framework and the application of economic theory, the report will provide detailed insight into the drivers of each force and the pressures that these forces put on the industry. These insights will then be used to determine the competitiveness of the industry and formulate recommendations for a start up boutique producer.

Methodology
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Cellar Doors.

Agricultural Activities - Land
Land is a crucial input to a start up boutique winery, and as previously discussed can also provide a significant barrier to entry. From the supplier perspective, the bargaining power of the purchaser is highly dependant on the present market rates as well as current government restrictions on the use of land and the subsequent availability of licenses .

The availability and location to prime market areas and geographic resources (such as water supply) drive the market elasticity demand factors governing land price. As such, site selection, soil profile and climate , all critical to wine flavor and quality, will (thanks to geographical experience indicators (AWBC, 2008)) significantly drive up the cost of land and determine the product that can be grown.

General Agricultural Activities

Agricultural equipment to support vineyard activities is supplied by a number of monopolistic suppliers. These suppliers compete across various agricultural sectors and as such stock specific, yet substitutable products that allow the purchaser some level of freedom in choice of supplier. This condition subsequently increases the ease of substitution (Porter, 1980).

Vines
Due to the potential destruction of

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