Strategic Management

Strategic Management Language : English (U .S

Table of Contents

Executive Summary 3

Industry Structure

Introduction - Company and industry overview 4

Company characteristics 6

Dominant industry characteristics 8

Competitive industry structure 16

Strategic Group Mapping 17

Industry Evolution and Outlook 18

Major trends 20

Impacts of trends on industry structure 21

Impacts of trends on strategic group map 21

Strategy Formulation

Practical vision of the firm 22

Present constraints 23

Strategic directions 23

Conclusion 27

1 . Executive Summary

Wine has been labeled

the fastest growing and most consumed beverage worldwide with increasing sales and consumer market share . Consumer studies conducted by Wine Business Monthly publication in the year 2006 show that core wine drinkers represent only 13 .7 percent of the United States population but they account for 87 percent of the consumed in the country . The wine industry consumption and sales pattern is undergoing continuous changes in the light of changing business dynamics . Any company involved in this segment needs to be versatile in the form of changing their product offering , modifying their strategic goals and recognizing threats and opportunities

This studies the wine industry dynamics with focus on Jacob 's Creek wine company in Australia . It explores the many aspects of the wine industry using the Porter 's five forces model determining the intensity of industry competition and profitability

The also analyzes the market trends that will influence the wine industry in the next five years exploring possible changes and market dynamics . The discussion then explores the impacts that these trends will have on the industry structure and competitive forces . It explains how Jacob 's Creek Wine Industry can adopt appropriate strategic recommendations to reach the identified business objectives in the next five years . The study concentrates on the Australian wine industry in the global perspective analyzing evolution and growth of the industry and shape of future markets in the light of present consumer trends

2 . Industry Structure

2 .1 .1 Company Characteristics

Jacob 's Creek owned by French beverage conglomerate Pernod Ricard is the most popular wine brand in Australia retaining its position as a leading export brand for more than a decade . The company origins dates back to 1976 when Orlando Wines introduced Shiraz Cabernet Malbec in the Australian wine market . The fresh and easy drinking style combined with excellent quality made the brand extremely popular in both Australia and global markets . The company adopted a simple philosophy in making and marketing its wine brands - good wines at good price . The company offers high quality , easy drinking , and flavorsome wine that does not require years of cellaring . The mission of the company is to improve the quality of each vintage (Jacob 's Creek website

Once it had secured the Australian market the company ventured into overseas market . In 1984 Jacob 's Creek shipped its first cases of Riesling to the United Kingdom . The company 's exports to 60 countries account for nearly 85 percent of its business and an estimated 2 million glasses of Jacob...