Preview

Current Strategic Position

Good Essays
Open Document
Open Document
1156 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Current Strategic Position
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

You May Also Find These Documents Helpful

  • Good Essays

    Bonny Doon Analysis

    • 1373 Words
    • 5 Pages

    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
  • Good Essays

    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
  • Good Essays

    Bonny Doon Case

    • 2560 Words
    • 11 Pages

    Bonny Doon Vineyards, a successful winery business based in Santa Cruz, California, has grown from selling 5,000 cases of wine a year in 1981 to 200,000 cases a year in 1999. To keep growing and be more profitable, the business must choose amongst three possible strategic directions. The first strategy is to start importing wines from Europe into the United States. The second alternative is branching into a retail outlet for unusual wines of great value, accompanied by a high level of service. Lastly, the business’ D.E.W.N could be expanded to include wines not made by the company itself but by other wineries that follow the same values and philosophy.…

    • 2560 Words
    • 11 Pages
    Good Essays
  • Powerful Essays

    The management of Beringer Blass is working to build a strong global presence for their company. Beringer Blass has successfully opened offices in the three key world wine markets - North America, Asia Pacific, and United Kingdom/Europe – and has established distribution networks in the United States, Asia, Europe, and Australia. Beringer Blass’s global expansion is challenged, however, by its lack of products in its wine portfolio; specifically products marketed to Europe.…

    • 1614 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    In addition, Kudler Company provides the highest quality products of wines and foods to their valued customers. Kudler’s professional and knowledgeable staffs contributed to its reputation for outstanding customer service and products offerings. Their continued success increased proprietor confidence, and the plans to expand into additional markets (Apollo Group, 2011).…

    • 1174 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    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
  • Satisfactory Essays

    calaveras

    • 318 Words
    • 2 Pages

    Calaveras Vineyards1. Executive SummaryAs a smaller producer in the California wine industry, Calaveras Vineyards is somewhatcomplicated to compare to other, larger, producers. In analyzing the company we estimated thevalue of the company to be $9.972 million dollars. Its growth rate of 6.67% is considerablysmaller than that of identified competitors. The liquidation value of the company is estimated at$18.277 million dollars; almost double that of its estimated value. Many of the values of thecompany are greatly influenced by the market to book ratio of its equity. Although the book value of equity is listed at $1 million, the market value is thought to be much higher, at $2.62million. This estimate is greatly influenced by the market to book ratio of equity of competitors.2. Information SourcesNo outside information was used in this analysis. All information was obtained from withincompany data including information on the competition, industry, and financial market.3. Business descriptionCalaveras Vineyards occupied 80% of a total 200 acres in Alameda Valley, California. CalaverasVineyards was founded in 1883 by Esteban Calaveras whose family continued to own thevineyard until the 1970s. The winery and the vineyard provided table wines for sale to retailersand restaurants. Dramatic growth in demand for California wines and the entry of largecorporations in the production of California wines has resulted in the constant changes inownership and marketing of the Calaveras Vineyards since 1986. In spite of the many changes inmarketing and ownership, Calaveras has improved on its brand image and market position so theowners aimed at the premium brand segment of the market. As Calaveras executed its strategy of introducing premium wines with higher average prices, sales increased from $2.4 million in 1990to $2.8 million in 1991 and 1992. However sales dropped to $2.5 million in 1993 due in part totheir lack of representation by a sales organization.Most recently,…

    • 318 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    CA/EPA at the time had selected a handful of organizations to establish its innovation Initiative in the field of Environmental Management Systems. As a result of this initiative, by 2003 the Benziger Family Winery invested countless hours developing an official environmental management system (EMS) for the winery operations, with the assistance of CA/EPA and its Innovation Initiative. The EMS adopted by the Benzigers, which is based upon an already attractive commitment to environmental pro-action, created a formal environmental policy, identified and prioritized the environmental impacts of the winery and established objectives and target for improvement. The Formal EMS developed by the Benzigers would give them a head start on qualifying for the new ISO14001 Certification, a world renowned standard in environmental management…

    • 444 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Adams, P. (2005). Grape glut sours wine industry. Retrieved 8th of June 2011 from http://www.abc.net.au/landline/content/2005/s1349757.htm…

    • 8386 Words
    • 34 Pages
    Good Essays
  • Powerful Essays

    Calaveras Vineyard was originally established in 1883 to make wine for the Catholic Church. They occupied 220 acres in California out of which 175 acres was occupied by the vineyard. They had now expanded into production of table wines for retailers and restaurants. It had changed three ownerships in the last nine years. The most recent owner was Stout Plc. which was looking to sell Calaveras and the management of Calaveras was the interested party in this transaction. The main strategy from 1987 was broadening the company’s position on premium brand category and this is evident from the fact that they were now concentrating on wines in the premium and super-premium category.…

    • 3401 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    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
  • Better Essays

    Stratus is not only marketing its fine wine and ice wine it also marketing the technology they use to produce the wine and keeping with tradition at the same time. They talk about where they came from and what they do.…

    • 971 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Mondavi

    • 1193 Words
    • 5 Pages

    Looking at the wine industry, and analyzing the market wine, we can say that there are three main factors that can bring to success a wine industry: brand image, distributer relationship and access to capital and collaboration. Robert Mondavi winery success depends and will depend on the same factors listed above. In order to ensure a leading market position I think that Mondavi should focus on solutions that enhanced this main factors like enforcing brand image, enhancing relationship with distributors, emphasis on joint venture and collaboration.…

    • 1193 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    This report encircles the problem faced by William Jaeger, co-owner of Freemark Abbey Winery. The firm produces premium quality wines made from high quality grapes. To produce quality grapes, the grapes need to be harvested when they have acquired proper sugar and acidity levels. Due to approaching storm, William is forced to evaluate the future options so that he can arrive at the right decision about harvesting the grapes. For William, there is a choice to be made between reputation and short term profits of winery. Different probable cases are evaluated which further help arrive at the apt decision.…

    • 517 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Wine Industry

    • 4543 Words
    • 19 Pages

    The United States wine industry is a 12 billion dollar industry and is composed of 7,000 wineries and around 1,800 different companies. The three major companies within the industry are Constellation brands, E&J Gallo, and The Wine Group Inc. The industry has made its way through the economic crisis at a better rate than some of the other U.S industries however in order for them to continue to see any type of growth it is important that they acknowledge their issues and find ways in which they can rectify them. The majority of the issues among the industry are problems that cannot be directly controlled by individual wine companies. Therefore it is imperative that wineries find away to use these issues to their advantage, since they are impossible to just ignore. The four most crucial obstacles the industry is currently faced with are the economic state, the climate changes, the price of gas, and the CARE Act of 2010. All four of these obstacles affect the production of wine and as an end results affect the consumer. These obstacles cause the cost of wine production to increase and therefore wine companies have to increase the price at which they sell their wine to consumers in order to offset the extra money that was put in to the manufacturing of the good. The industry should also focus on their weaknesses amount the five forces, which include threat of substitutes, threat of entry, and threat of rivalry. If the industry can focus on lowering these threats, and concentrate on the value of their customers then they will be able to face the issues that they cannot control with a stronger hold on the market.…

    • 4543 Words
    • 19 Pages
    Powerful Essays

Related Topics