Beringer Blass wine estate

Essay by np4friendsUniversity, Master'sD+, May 2006

download word file, 7 pages 4.0

SWOT analysis


- Strong brand name with many international brands

- Second most producer of wine in the world

- First mover advantage in quality products

- High economy of scale by large scale of production

- High rate of return by maintaining cost structure and high profit margin

- Highest growth rate of the company

- Many brands around the world

- International expansion by merger and acquisition


- Return on capital employed for combined operations decreasing

- Wine club revenue is falling

- Business differentiation is limited to only alcoholic beverages

- Employee motivation and management not specifically defined

- Lack of cost reduction structure

- Product and accessories features enhancement is slow

- Lack Aggressive marketing and advertising campaign

- Product localization is not well justified

- Distribution network is some how dependent on other small companies

- Only few countries has been targeted yet


- Premium wine consumption is increased every year steadily

- US market is the largest market in the world and also the most profitable

- UK market has the highest growth rate and this market still growing rapidly through this market more revenue can be generated.

- Merger and acquisition with branded companies like southcorp can increase company's market share

- Business diversification into related beverage like cold drinks and water

- Business diversification can into whisky, vodka to capture more alcoholic market

- Wine accessories business can be expanded to many other countries

- Wine club can be started to other countries as now it is limited to only few countries


- Wine consumption has declined in many countries like France, Argentina etc

- Wine production in many countries is decreasing

- As this product is controlled for ages above 21, many government changing laws on time...