California Wine Cluster
THE HAGUE UNIVERSITY OF APPLIED SCIENCES
STRATEGIC MARKETING MANAGEMENT CASE: THE CALIFORNIA WINE CLUSTER NAME: DAVID MARTINEZ VEGA LECTURER: A.T. Barendregt RM MBA
DATE: 03/05/2012
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ContentsIntroduction ........................................................................................................................................ 3 1. Situation Analysis ........................................................................................................................ 3 1.1 Internal Analysis ........................................................................................................................ 3 1.2 2. 3. 4. 5. 6. 7. External Analysis.................................................................................................................. 5
Core Problem .............................................................................................................................. 8 Main competitors of California Wine Cluster ........................................................................... 10 Suggested Strategies ................................................................................................................. 11 Operational Marketing Plan ...................................................................................................... 12 Contingency Plan ....................................................................................................................... 14 References ................................................................................................................................. 15
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Introduction
The California wine industry is relatively young compared to the traditional producers of wine like France, Italy and other European countries who have been present in the wine market/industry for many years prior to the appearance of the California wine cluster. However it has become one of the world’s main players competing directly with the before mentioned countries and new entrants like Australia and Chile, among others. On the way, the California wine industry has had to deal with a series of issues like grape supply shortage, high cost of land, new entrants, low internal market consumption of wine, and a difficult and hard work positioning its wines brands on to the international markets. All this effort is now reflected on the international recognition it has and the position as market leader inside the U.S. Nevertheless, to continue enjoying a strong presence in the internal market, and growing into the international market, it is necessary to make a complete analysis of the industry, define their main problem and redesign their marketing strategy, altogether with the whole operational marketing plan.
1. Situation Analysis
1.1 Internal Analysis
Value Chain In order to clearly define the California Wine Cluster core problem as well as to identify its main competitors and find out the right strategy to follow up, it is indispensable to make an internal and external analysis with the use of tools or models designed to do so like PEST, Value Chain Analysis, SWOT and Porter’s 5 Forces. The firs tool used for this analysis is the Value Chain model, followed by comparisons with its main competitors. Whit this model we can identify the firm’s core competences as well as to distinguish and differentiate those activities that leads us to attain competitive advantage.
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Primary Activities: 1. Inbound Logistics: The wine industry deals with the provisioning of grapes, handling devices and materials for grapes, the later grape processed bulk of wine and indirect materials such as bottles, labels and cork. Into the facilities the vineries work on the ...
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