Brl Hardy : Globalizing an Australian Wine Company

Topics: Cabernet Sauvignon, Chardonnay, Table wine Pages: 4 (1043 words) Published: December 7, 2011
1.1 Wine Industry - Porter Analysis

Porter analysis, a highly competitive industry under consolidation with very high market potential and growth. Faire un summary des points clefs:  • A COMPLETER  DETAILS:  • 1.Bargaining power of customers = High 5/5  o No switching cost  o Numerous players, numerous wine  o At final customer level  § Change in consumer habits and needs:  • “Industry was becoming increasingly fashion-driven” Australian wine was becoming a “hot trend”  o At distribution channel:  § Increasing power of wine wholesalers and retailers (less fragmented, rationalization and consolidation).  § Looking for set of key partners to source large quantity of wines and worldwide. in many countries, such as Sweden and most of Canada, state-run monopolies controlled retail distribution channels. These monopolies could buy direct from the wine producers and had strong bargaining power over distributor/wholesalers and the wine producers themselves. In Britain, the large supermarkets such as Tesco dominated retail sales, and large firms such as Wine Importer and Corney & Barrow dominated the import/wholesaler business. The supermarkets had the ability to buy directly from producers and increasingly preferred to deal with a smaller set of producers with broad product lines. • 2.Bargaining power of suppliers = 4/5  o One of the “core critical resources”: access to good grap fruit is key. Suppliers are sometimes switching quickly from one  o Vintage could jeopardize for various reasons.  • 3.Thread of substitutes = Medium 3/5  o In Australia: change in the consumer habits: moving from beer consumers to wine consumers; → increase in domestic consumption.  o Alcopops “Ice sirmoff” like drinks arriving.  • 4.Thread of new entrants = 2/5  o Complex industry, complex value chain. Very difficult to enter.  o Under concentration / consolidation. Ex. In Australia 1996  § 10 largest companies = 84% of the grape crush  § 4 controlled over 75% of...
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