Current Strategic Position

Topics: Wine, Vitis vinifera, Grape Pages: 5 (1156 words) Published: October 18, 2010
Current strategic position
Type of organization
Schultz Wines limited was established in the 1840s by one of the founding winemaking families of the Barossa Valley in SA who migrated from Germany. The current director Fred Schultz is 5th generation winemaker and maintain the tradition of being an independent family wine company with premium brands. What industry, product segments/markets does it operate in?

* The company purchases grapes from about 185 local independent growers and it has adopted the philosophy to protect the livelihoods of the growers the company only produce 20% of its requirement in their own vineyards. * Takes its responsibilities to the community the environment and sustainability seriously. The company was he first Aust winemaker to implement a Harzard Analysis Critical Control points plan for food safety system * As well as making wine for sale, Schultz Wines also crushes grapes for other wineries. * The company has established a solid presence both in domestic and internationally - UK, Continental Europe as well as North America New Zealand, Asia and the Pacific region. * Distributed through well established wine merchants in these major markets including prestige hotels and restaurants ensuring strong consumer demand for its wines in these markets * The Schultz Cellar Club was established in 1999 as a mail order operation within in Australia and offer to the general public. Current life-cycle position of the industry

* The phase of the life cycle of the Australian wine industry has changed from ‘growing’ to ‘mature’ where the requirements are much more complease and must innovate in order to keep up. * The increase in vine plantings has contributed to an increase in wine stockholdings because export sales demand has not grown at the same rate as production growth. This excess holding in production in 2008 was the result of a severe outbreak of downy mildew in the SA wine regions and combined with prolonged drought conditions across most Aust wine producing regions.

Factor| Issue| Nature of impact| Assessment of impact on historical industry growth| Social/culture| * Changing consumer preferences towards a Mediterranean diet stimulated by European immigration * Increasing trend towards dinning out * Growing concern about health * social responsibility * Changing in role of women * Adaptation of products to suit consumer tastes * The ability to supply a variety of wine styles and improved packaging choices| Posititve

Positive
Positive
negative
Positive
Positive| High

High
High
medium
high

high|
Demographic| * Aging of Australia’s population| | | Economic| * Decline in the sale value per litre due to a relatively strong Australian dollar on foreign exchange markets * Decline in export prices driven by strong buyers in UK and US * An oversupply of export market red wine resulting from the significant vine planting in the early 2000 and this has depressed the price of red wine on the export market in last 2 years * Global financial crisis * Volatile exchange rates * Reduced asset values and vulnerable share-market valuation * Decline in production in 2008 due to * Severe outbreak of downy mildew in the SA which resulted in significantly reduced harvest yield * Prolonged drought conditions across most of Aust wine producing regions * A large increase in the number of winemakers in the past decade| Negative

Negative

Negative
Negative
Negative
| High

High

medium
medium
Medium|
Technology| * Improvements in viticulture and winemaking| Positive| | Political| * Tariff duties have declined since the early 1990s| Positive| |

Factor| Issue| Nature of impact| Assessment of impact on historical industry growth| Social/culture| * Consumer preferences can easily shift among different wines/other beverages such as spirits, beer, bottled water and soft...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Strategic Position of Electrolux
  • Strategic Position Statement Essay
  • The Strategic Position Essay
  • Analyze Your Current Financial Position Essay
  • General Electric Strategic Position
  • Marketing Strategy –Strategic Position Assessment Essay
  • Current Position of Tata, 2013 Essay
  • Analysis of Strategic Position Essay

Become a StudyMode Member

Sign Up - It's Free