a)Swot Analysis of Leeuwin Estate
Leeuwin combines advance modern technology with old world technique to produce their wine. Therefore, their production are more effective and efficient resulting in a higher quality of wine.
The estate contains award winning restaurant, art gallery and concert, reflecting that Leeuwin is no just about wine but also a fundamental way of living. This let consumers to have a different and unique way to enjoy wine in the Leeuwin’s way of fine wine, fine food and fine art. It is different way of enjoying wine compared to the normal ways.
Distinctive labels with favorable comment from famous wine critic Robert Parker, who is a very influential person that directly affect a winery’s sales. Therefore with a good comments from Robert Parker, Leeuwin’s wine is considered one of the best, investment and sales will certainly improve as Robert Parker is well-known and respected.
Its domestic reputation is good therefore Leeuwin has what it takes to enhance global position and the standing of Australia in the wine industry and boost exports in the increasingly competitive global market.
Leeuwin estate is responsible for making Margaret River a well-known region in wine production. People recognize Margaret River through Leeuwin Estate. This shows the indispensable of Leeuwin Estate to Margaret River.
The Art series distinguish itself from the common taste of wine of Australia. Most wine taste alike nowadays, Leeuwin’s Art series separates itself from the common taste of wine with its unique taste.
Leeuwin only produces 600,000 bottles of wine per year, compared to the 48,000,000 bottles of Jacobs Creek and the 65,000 bottles of wine per hour of Casella Wine. This shows that Leeuwin has a very small market domestically and globally. This causes Leeuwin to be less competitive in the wine export, unable to compete with the larger wineries.
Situated far away from Perth (3 hour drive) makes travelling difficult, consumer will hesitate to drive 3 hours just to taste the wine and visit the gallery. Low visitors affect the ticket sales of the concert which in turn affect revenue. Not many people would attend the function held in the concert too.
Weak global position. Leeuwin is not well-known globally. This affects the exportation of wine and low visitors to Leeuwin Estate.
Short history of the label causing Leeuwin difficult to compete with other label with longer history as companies with longer history may be seems as more trustworthy.
Winemaking operation is small thus; the wine capacity may not be enough to manage large number of wine which is needed to export to more countries.
With state of the art architectures of the estate, it is possible to make Leeuwin a distinctive tourism attraction with yearly wine festivals
Government generous tax incentives for wine, it is possible for Leeuwin to increase its wine exports.
Its low cost wine is well-known, so it might be a good time to produce premium higher cost wine for the increasing number of high class market.
The rapid change in society will inevitably result in higher standard of living, thus the demand for wine as a luxury product will increase. With good marketing strategy, it is possible to take advantage of this fact and increase wine production to cater both domestic and global market
Most country have their own wine culture, Leeuwin can cater to these different type of wine culture with different series exporting to different country
Fierce competition in the low cost wine industry from both global and domestic market. Chile, Argentina and China are some of the competition overseas. Furthermore, as Margaret River is packed with wineries, competition is tough too domestically.
Wine is considered luxury products therefore it will be hit hardest when economic is falling.
With the increasing concern of health problem cause by alcohol,...
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