Competition in the Global Wine Industry.

Essay by bilkaUniversity, Bachelor'sA-, December 2006

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1. Using a SWOT (strengths, weaknesses, opportunities, and threats) analyze E&J Gallo's position from the point of view of American wine producers. Also using the grid that we discussed in class, (industry attractiveness/competitive position), come up with an assessment of where they might fall within the grid.


E&J Gallo is the largest wine producer on the American wine market, and the most known. This current strong position and good reputation is the most valuable strength of the company that started as low-cost producer of low and moderate-quality wine. The position links to the company capacity to produce and sell over 330 millions gallons of wine in 2000. E&J Gallo's abilities to sell that amount of wine required master the key success factors of the wine industry. KSFs of the wine industry are the taste and quality of wine, being able to build strong network of dealers, and secure best shelf space in the liquor stores.

The additional strengths that open the way for the success were strong advertising and promotion and good control over the costs achieved through forward and backward integration and advanced production techniques.


It is hard to point any weaknesses of the company that is the best performer on the domestic market. One of the weaknesses may be that the company is not prepared to fight over the market of premium wines.


One of the market possibilities is the possible expansion to different segment market. The company may target the high-end segment and start focus on the market niches. The internet may also be a Gallo's ally in gaining additional consumers and segments on the domestic market and on the international market.

Gallo should also watch for the changes in lifestyle and diet. The consumers eat more Mediterranean meals that go good with...