Casella wines ? Export success :: essays research papers

1.Identify its international markets&61607US and North America identifiedoDistribution network 44 states.oSize initially estimated 20-30 thousand cartons to 100 thousand cartons, reality was 20 to 200 thousand.oAnnual sales $3 million.&61607UKo roughly regional supermarkets hoping to expand to majors.&61607Main toss off EuropeoSome beginning sales.2.Describe and analyse the reason for its international expansion&61607Increase sales/find new markets interior(prenominal) market oversupplied&61607Minimise competitive risk&61607Economies of scale&61607Cushioning economic cycle&61607Comparative advantageoHigh cost of labour and land in US.3.Explaing the influences on this business in the global marketPoliticalTensions between free alternate and protection&61607Globalisation seeing removal of barriers&61607Eg. Quotas, tariffs, subsidies statistics&61607Exports of wine-colored have increased from 3% of sales to 52% of sales in 2002. this equals $2.3 billion dollars or 414 million lit res&61607US greatest source of export outgrowth&61607Australias export policy has led to major reforms in the Australian wine industry&61607Rationalisation of wine production leading to overall might giving them cost advantages over their competitors and reshaping of distribution lines.&616074th largest wine exported in the world with 5% of global marketInternational organisations and treaties&616071994 Uruguay multilateral agreement (WTO)&61607 stipulation to reduce protection on agricultural products (wines/grapes) by 36% by 2000&61607UK has the largest export market of wineTrade agreements&61607US and Australia have strong trade relations and trade agreementsWar in the Middle EastWeak economic conditionsSocialConsumer tastes&61607Global markets have been increasingly integrated&61607Growing remove for mass market, high quality wines and a recognisable brand&61607Marketing of wines other benefits has increased consumption globally&61607Strong economic growth point sees wine vi ewed as a luxury good, something consumers buy when they feel conditions are good as their incomes are increasing. Also at this particular price appreciation fluctuations do not vary with economic conditions&61607Strong market for Australian markets taking off in the USFinancial&61607Currency fluctuations&61607Weak Australian dollar has helped making Yellow Tail a better taste at $7 and a lower price than its Californian counterparts which are hobbled by high cost of land and labour&61607Currency fluctuations would have to get way about 70 cents for Casella to be unprofitable without a price kindLegal&61607None mentioned4.Explain the strategies used by the business to achieve its target markets