Casella wines ? Export success :: essays research papers

1.Identify its international markets&61607US and North America identifiedoDistribution mesh topology 44 states.oSize initially estimated 20-30 thousand cartons to 100 thousand cartons, reality was 20 to 200 thousand.oAnnual sales $3 million.&61607UKoSome regional supermarkets hoping to expand to majors.&61607Mainland EuropeoSome beginning sales.2.Describe and analyse the reason for its international expansion&61607Increase sales/find late markets domestic market oversupplied&61607Minimise competitive risk&61607Economies of scale&61607Cushioning economic cycle&61607Comparative advantageoHigh cost of lying-in and land in US.3.Explaing the influences on this business in the global marketPoliticalTensions between free trade and protection&61607Globalisation seeing remotion of barriers&61607Eg. Quotas, tariffs, subsidies statistics&61607Exports of wine have increased from 3% of sales to 52% of sales in 2002. this equals $2.3 billion dollars or 414 million litres&61607US greatest s ource of exportation evolution&61607Australias export policy has led to major reforms in the Australian wine industry&61607Rationalisation of wine production leading to general efficiency 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 transcription (WTO)&61607Agreement 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 backbreaking trade relations and trade agreementsWar in the Middle East light economic conditionsSocialConsumer tastes&61607Global markets have been increasingly integrated&61607 growth demand for mass market, high quality wines and a recognisable brand&61607Marketing of wines other benefits has increased consumption globally&61607Strong economic growth period sees wine view ed as a luxury good, something consumers buy when they feel conditions are good as their incomes are increasing. Also at this particular legal injury range 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 expenditure 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 changeLegal&61607None mentioned4.Explain the strategies used by the business to achieve its target markets