SWOT analysis
Strengths
- 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
Weakness
- 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
Opportunities
- 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
Threats
- 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...