Preview

PESTEL Analysis of Wine Industry

Good Essays
Open Document
Open Document
618 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
PESTEL Analysis of Wine Industry
Elif Sinem Saydam
20900455
MAN333-003
HW#1

A Macro-Environmental Analysis of the Wine Industry in Turkey
A factor that influence a company's or product's development but that is outside of the company's control is known as macro environment. In this paper, all dimensions that affect that wine industry in Turkey are investigated. It is important to observe the wine industry in terms of political, economic, socio-cultural, technological and natural aspects; it is called as PESTEL analysis. This analysis which provides the deeper look into this large sector can be found below.
Socio-cultural Environment
There is no significant change in the demographic side of the wine sector recently. However it is known that Turkey consists of mostly Muslim citizens and this brings the religion-related factors with it. The majority and the current government create several unwritten rules among the society. It can be called as social and cultural pressure which comes with the demographic structure of Turkey.
Economic Environment
Turkey has a serious progress in terms of wine production in last 10 years3.
Wine production contributes to number of high quality tourists in Turkey. So, it increases the tourism incomes.
However, the availability of wines in markets, stores is getting hard. This problem puts producers in a difficult situation.
There is high tax issues in wine industry.
Natural Environment
The natural environment involves the natural resources that are needed and sustainability of the wine industry in Turkey. Wine production in Turkey goes back a long way and it seems there are adequate resources to continue this sector, such as huge vineyards, many boutique and institutional producers1.
Wines are getting better and better. Those made from indigenous grapes like Okuzgozu and Bogazkere are igniting international interest. Turkey is experiencing a wine renaissance.

Technological Environment
Technological environment involves forces that create new


References: 1 http://www.bloomberg.com/news/2013-06-16/turkey-s-vintners-under-siege-as-bans-crush-winemakers.html 2http://www.radikal.com.tr/ekonomi/sarapciligin_vergi_mahalle_baskisi_ve_belediye_kisitlamalariyla_hizi_kesildi-931051 3 http://www.radikal.com.tr/yazarlar/jale_ozgenturk/bugunku_aklim_olsa_sarap_isine_girmezdim-1121693
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Bonny Doon Analysis
    • 1373 Words
    • 5 Pages

    Bonny Doon Analysis

    Traditionally wine was seen as a “pretentious” product in U.S, but by the late 1990’s to early 2000’s, wine started to become a popular social drink for the masses. In addition, the market became more adventurous, demanding unusual “undervalued” wines instead of the traditional wines such as Chardonnay. The adventurousness was driven by “Generation X” and created a significant opportunity for wineries to meet this new unconventional demand. As the industry is still currently in its growth stage, the industry attractiveness is high. Wine is a relatively high margin product, and there is increasing demand domestically and internationally. Because of…

    • 1373 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    BSBMKG416A Assessment Task1
    • 1729 Words
    • 8 Pages

    BSBMKG416A Assessment Task1

    With the slow growth in domestic wine sales, accompanied by an oversupply of wine grapes export markets have become a key driver in sales growth. Watershed has focused its marketing efforts on Asia and in particular China. The high Australian dollar has impeded export growth, however exports remain the primary source of growth for premium wine sales.…

    • 1729 Words
    • 8 Pages
    Good Essays
    Read More
  • Good Essays

    Bonny Doon Case
    • 2560 Words
    • 11 Pages

    Bonny Doon Case

    The size of the wine market in the U.S., measured by tonnage, is estimated to be 2.5 million tons of crushed wine grapes in 1998. About half of the tonnages crushed are red wine grapes and the other half are white wine grapes. The best wineries are located in the Napa Valley and Sonoma region, whose wines receive high praises from critics. The per capita wine consumption in the U.S. is only about 2.02 gallons per adult as compared to 16.2 gallons in France and 15.8 gallons in Italy. Thus, demand for wines in the U.S. has huge potential for continued growth. At the same time, there is increasing demand for U.S.-made wines abroad.…

    • 2560 Words
    • 11 Pages
    Good Essays
    Read More
  • Good Essays

    The Changing Nature, Spatial Patterns and Ecological Dimensions of a Global Economic Activity: Viticulture Case Study
    • 956 Words
    • 4 Pages

    The Changing Nature, Spatial Patterns and Ecological Dimensions of a Global Economic Activity: Viticulture Case Study

    Wine production involves two parts of economic activity – viticulture and wine making in the winery. In the global context, wine production is dynamic due to the influence of globalization, technological advancements and extensive research. These have essentially influenced the nature, spatial patterns and the ecological dimensions of the wine industry.…

    • 956 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Mondavi Winery
    • 495 Words
    • 2 Pages

    Mondavi Winery

    With regard to the wine market prospects, there are two sides of the argument which favour and unfavor the wine market. It is thus difficult to judge from the wine market aspects.…

    • 495 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Arrowood Times Case
    • 3253 Words
    • 14 Pages

    Arrowood Times Case

    |Arrowood Times are not promising for boutique American wineries, with many closing, plowing under their fields, or selling | | |…

    • 3253 Words
    • 14 Pages
    Good Essays
    Read More
  • Good Essays

    ivey
    • 1618 Words
    • 7 Pages

    ivey

    Demographic data based on research conducted by Mintel and Simmons Research are shown in Exhibit 1. In general, wine consumption increases with age, income, and educational level. Constellation Wines conducted an online survey of over 3,500 core consumers who had purchased wine costing at least $5 in the last three months. The…

    • 1618 Words
    • 7 Pages
    Good Essays
    Read More
  • Good Essays

    E J Gallo wineries: A case study
    • 2418 Words
    • 9 Pages

    E J Gallo wineries: A case study

    For the purposes of this case analysis of E. & J. Gallo Winery, the wine industry is composed of all alcoholic beverages that contain between eight and twenty percent alcohol by volume. This distinction is based on the assumption that beer and the typical malt liquor contain less than eight percent alcohol by volume. The twenty percent limit is a result of state and federal tax and licensing laws. The three top competitors that are identified in this case study are E. & J. Gallo, Canandaigua and Mogen David.…

    • 2418 Words
    • 9 Pages
    Good Essays
    Read More
  • Good Essays

    nature and spacial patterns of viticulture
    • 834 Words
    • 4 Pages

    nature and spacial patterns of viticulture

    The global wine industry involves two distinct activities, viticulture and winemaking. Viticulture is the cultivation and harvesting of grapes and winemaking is the production of an alcoholic beverage via the crushing and fermentation of grapes. The spatial distribution of winemaking is now known as to be either old world or new world and the characteristics of these different areas determine the kind of wine and also quality of the wine produced. Looking into the future of the viticulture and winemaking industries the challenges they are expected to encounter are complex.…

    • 834 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Whole Foods Pestel Analysis
    • 985 Words
    • 4 Pages

    Whole Foods Pestel Analysis

    Grocery stores are the traditional destination for consumers looking to find many day to day items. The need of shoppers to continuously refill and restock their kitchens. Consumers usually have a wide range of grocers to choose from. They can choose from neighborhood supermarkets, as well as large retail chains and discount stores. The PESTEL analysis is a tool used to analyze the external environment of an organization. By using the PESTEL framework we can analyze the many different factors in a firm 's macro environment. However, it is important not to just list PESTEL factors because this does not in itself tell very much. We need to think about which factors are most likely to change and which ones will have the greatest impact on each aspect of the company by identifying the key factors in their own environment. The macro environment of whole foods is relatively good, and each aspect of the PESTEL analysis plays a large role in determining the quality, standards and efficiency of a company.…

    • 985 Words
    • 4 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Global Wine: New vs. Old World
    • 8146 Words
    • 33 Pages

    Global Wine: New vs. Old World

    Public perceptions 2. Fragmentation of wineries 3. Overproduction 4. Climate 5. Trade regulations 6.…

    • 8146 Words
    • 33 Pages
    Good Essays
    Read More
  • Better Essays

    Global Wine Wars
    • 1163 Words
    • 5 Pages

    Global Wine Wars

    This case describes the global development of wine industry, and how new world wine players occupied the global market share from old world wine producer gradually. It is very interesting that author selected the Britain as the sample stage for the battle between the new world wine campaign and the traditional campaign.…

    • 1163 Words
    • 5 Pages
    Better Essays
    Read More
  • Powerful Essays

    Mister
    • 5163 Words
    • 19 Pages

    Mister

    The Chilean wine industry has undergone numerous and profound transformations over the past 30 years – its quality revolution led by the complete technological renovation during the 1980s, the export boom of the 1990s, and the new terroir developments during the 2000 decade. This transformation has allowed a new generation of talented viticulturists and winemakers to capitalize on Chile’s viticultural paradise and to produce World Class Wines of unique character and personality. Chile is the world’s eighth largest wine producer and the fifth largest exporter, reaching a market share of 8 per cent by volume of the global international wine market at the close of 2010. However, and most importantly, Chile exports 70 per cent of its wine production, making it the world’s most globalized wine industry, with great flexibility, innovation and a long-term commitment to quality and service second to none. With 150 destination countries and 1.5 billion consumers per year, Chilean wines are positioned as the country’s most emblematic and best known world ambassador. Despite this undeniable success, Chilean wines face very high levels of competition in the different world markets from many appellations and brands, and its average prices are substantially lower than those of its competitors. As a consequence, the industry’s present profitability levels are low, and there is an urgent need to elevate the premium positioning and average prices to achieve a sustainable return in the long term. Making decisive progress toward positioning Chile as a world-class appellation for the production of premium and superior wines, gaining additional image and value is the only possible response to the competitive challenges the industry face today.…

    • 5163 Words
    • 19 Pages
    Powerful Essays
    Read More
  • Good Essays

    Global Wine War Analysis
    • 1026 Words
    • 5 Pages

    Global Wine War Analysis

    The experience of France as a quality wine producer going back to the middle ages can be regarded as a source of competitive advantage. Another source is the strong wine culture in France creating a positive image for customers. The wine industry by itself is a very important economic factor in France, in the mid 18th century the wine industry accounted for 17% of the overall industry. As a consequence, in 1855 the government classified wine yard into five different levels of quality. This helped the consumers to identify the best possible wines and was unique at the time, which created sustained competitive advantage. Simultaneously, the introduction of mass production of bottles and use of cork stoppers facilitated the former difficult distribution of French wine to foreign markets.…

    • 1026 Words
    • 5 Pages
    Good Essays
    Read More
  • Better Essays

    SWOT Analysis Of Golan Heights
    • 1271 Words
    • 6 Pages

    SWOT Analysis Of Golan Heights

    1) Golan Wines is a wine producing company situated in Golan Heights, an ideal location for the production of good quality grapes. China has become one of the major consumers of wine and promises tremendous growth in this industry, largely due to its vast population and increased appreciation for wine. Golan Heights Wines wants to take advantage of this incredible opportunity in the Chinese Market. Hence, I would like to conduct PESTLE analysis of China and SWOT analysis of Golan Heights to understand the various risks associated with entry into the promising Chinese Wine Market.…

    • 1271 Words
    • 6 Pages
    Better Essays
    Read More

Related Topics