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Industry Analysis Report the Australian Wine Industry

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Industry Analysis Report the Australian Wine Industry
INDUSTRY ANALYSIS REPORT

THE AUSTRALIAN WINE INDUSTRY

‘The Boutique Producer’

by

4 students (anonymous)

Executive Summary

This report provides an overview of the Australian Wine Industry using Porter’s Five Forces industry analysis framework and seeks to provide recommendations based on the impact of the forces for a start up boutique producer.

Through the use of Porters framework and the application of economic theory, the report will provide detailed insight into the drivers of each force and the pressures that these forces put on the industry. These insights will then be used to determine the competitiveness of the industry and formulate recommendations for a start up boutique producer.

Methodology

The report initially provides a market definition to contextualise the analysis before focusing in on the particular forces within the framework and presenting their impacts independently relative to a start up boutique winery. The analysis of this framework provides a dynamic picture of the industry and at the present time.

Finally this report provides clear, substantiated recommendations for a start up boutique winery that are supported by both framework analysis and economic theory.

Table of Contents

Executive Summary 2

Market Definition 5

Analysis of Porters 5 Forces plus 1 - The Australian Wine Industry 5

Barriers to entry 5

Threat of Substitutes..................................................................................................6

Buyers 7

Suppliers 9

Internal Rivalry 11

Government 13

Recommendations 15

Conclusions 16

References 17

Market Definition

The Australian wine industry is the 6th largest producer globally and comprises roughly 2000 wine companies , employs an estimated 31,000 people,


References: Australian Government Environmental Protection Agencies (2008) www.epa.gov.au Accessed 4th July, 2008 Department of Primary Industries (2008) www.dpi.nsw.gov.au Accessed 4th July, 2008 Edwards, Frances; Spawton, Tony (1990) Pricing in The Australian Wine Industry, European Journal of Marketing, 24, 4. FSA Consulting (2006) Best Practice Guide for Water and Waste Management in The Queensland Wine Industry, 6496 Best Practice Guideline – 2006. www.dtftwid.qld.gov.au Accessed 9th July, 2008 NSW Department State and Regional Development (2008) www.business.nsw.gov.au Accessed 4th July, 2008 Porter, Michael E (1980) The Structural Analysis of Industries, Competitive Strategy : Techniques for analyzing industries and competitors, Chapter 1. Wine Diva (WD) (2008) Wine Diva – Gateway to Wine Australia Accessed 3rd July, 2008 Winemakers Federation of Australia (WFA) (2007) Benchmarking Guide - Small Wine Business, Wine Australia: Directions To 2025
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