Wine Industry

7514 Words Jan 4th, 2006 31 Pages
AMERICAN UNIVERSITY OF BEIRUT
SULIMAN S.OLAYAN SCHOOL OF BUSINESS

BUSS 249
STRATEGIC MANAGEMENT
DR.YUSUF SIDANI

INDUSTRY ANALYSIS
WINE INDUSTRY IN LEBANON

PRESENTED BY
NADINE BARAKAT
YASMINE ASHOUR
MOHAMMAD EL BEITAM
MOHAMMAD SALTAJI
ALI KHALIFEH

NOVEMBER 24TH, 2005

Executive summary

The following project goes deep to explain the current situation of the Lebanese wine industry. It begins by giving a brief introduction about the current economic situation in the country. Then it gives a detailed explanation the industry economic situation and of the rival forces (Rivals, Supplier bargaining power, Buyers bargaining power, substitutes, new entrants), its effect on the industry, and the amount of risk it contains.
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Kefraya and Ksara became the top wine producers in Lebanon.

II- Overview of the macro environment:

A- General Economic Conditions:
The recent expectations about the Lebanese economy are becoming clearer, according to the Business Monitor International. The GDP growth is expected to change from 3.5% to 3%, the Central Bank head Mr. Riad Salameh projected that the GDP growth is 2%, but recent indicators have shown some developments in the economy which made increase our expectations to 3%. The expectations for 2006 & 2007 are expected to continue at 2.5% GDP growth.
The tourism sector which is considered very sensitive to perceptions of risk is the most affected by the recent political situation in the country. According to the minister of tourism MR. Sarkis Said the tourism level has decreased by 20% from 2004. The Lebanese debt has come to about $35.6 billion which is equal to 180% of the GDP.
Although the economic situation in Lebanon has been risky lately, the expectations for an improved economy still exist.
The wine industry was affected by the recent economic conditions, but because a big portion of the industry production is exported the industry was not really affected. In addition due to the recent promotions that most of the companies have conducted led to improve the situation.

B- Population Demographics:
The industry is really affected by the country 's demographics, especially by the distribution of the religions in the country

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