Vincor International Analysis

1853 Words Feb 12th, 2011 8 Pages
Vincor International Analysis
Vincor’s Strategy Vincor International goal is to become one of the top five wine companies in the world in terms of earnings. In order to attain this goal they have implemented a corporate strategy that focuses on using their existing powerful position in market to help them developing sales, marketing, distribution capabilities on an international scale. The strategy also includes acquiring new wineries and wine brands in new emerging region in the wine market also called “New World regions”(Vincor, 2005) throughout the world. More precisely Vincor International strategy for growing the market shares involved the six following strategic actions: “(1) emphasizing the development, sales and marketing of
…show more content…
For instance if the grapes or having a good season and there is an unlimited amount of quality grapes then the bargaining power will rely with the buyer, hence the bargaining power of suppliers will be low for this particular season. However if the weather is not cooperating during the growth and there is a limited amount of grapes available to the buyer than the bargaining power will lay with the supplier and will be assessed to high for that season. Therefore the bargaining power of suppliers can change from season to season depending on the availability of quality grapes. It is also important to point out the bargaining power of supplier will also vary with the kind of wine produce, one kind of grape needed for a particular kind of wine can be abundant but another type of grape needed for a different type can be scarce. A good knowledge of the industry and weather can help a wine producer better manage the uncertainty of the bargaining power of suppliers from season to season. Vincor as tried to minimize the bargaining power by having owning their own vineyard and wineries so they supply their own grapes however they still buy 35% of their needed grapes from suppliers.
Threat of substitutes: In the wine industry, the companies are faced with a vast variety of substitute. Basically any alcohol beverages from beer to champagne are a threat of substitutes. Depending on consumers taste wine can
Open Document