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Analysis of the Australian Wine Industry

   

Added on  2019-10-31

10 Pages2486 Words103 Views
Political Science
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An Five Forces Analysis of Australian Wine Industry2017Australia has been producing wine for over 150 years but it has been only in the last 15 years that the country has become a significant producer of wine. Australia is, what some people might call , a new wine producing country. Wine is a source of export income and employment generation in Australia. This paper is an analysis of Australian Wine Industry using Porters Five Factors Model
Analysis of the Australian Wine Industry_1

Contents1.Introduction.........................................................................................................................................22.Internal Rivalry....................................................................................................................................33.Threat of Entry....................................................................................................................................53.1 Barriers of Entry to the Australian Market.........................................................................................53.2 Barriers of Entry to the International Market for Australian Producers.............................................54.Substitutes and Complements..............................................................................................................65.Bargaining Power of Suppliers............................................................................................................66.Bargaining Power of Buyers................................................................................................................77.Conclusion...........................................................................................................................................8Figure 1 Some Products of the Wine Industry in Australia (IBIS World, 2017)4Figure 2 Supply Side of Wine Industry in Australia. Source (Winemakers' Federation of Australia, 2014)5Figure 3 Demand Side of Wine Industry in Australia. Source (Winemakers' Federation of Australia, 2014)....................................................................................................................................................................5
Analysis of the Australian Wine Industry_2

1.IntroductionThe Australian Wine industry is comprised of around 2,620 registered wineries[ CITATION Win16 \l 1033 ] and several resellers. The wine industry is an important industry from the point of view of export and employment generation for Australia. The industry provides direct employment to 16,122 people and mostly in semi urban and rural areas.[ CITATION Pod15 \l 1033 ] Wine is produced in all states of the country and sold in the domestic and international market[ CITATION Win171 \l 1033 ]. Hence, the demand for the wine industry is not just the domestic consumer but the international wine consumers as well.Wine is produced in all states of Australia with South Australia is the largest wine producing state in Australia. On the production side, the wine industry is dominated by large wine brewing companies like Accolade Wines, like multinational companies like Pernot Ricard as well as by large supermarket chains like Coles.[ CITATION Win16 \l 1033 ]The vast expanse of the country and its various climatic zones makes it possible to produce all kinds of wine in Australia with wine being produced in the hotter climatic zones as well as the cooler climatic zones. [ CITATION Kim15 \l 1033 ]The wine produced is exported globally and is a source of foreign trade. One of the biggest markets for Australian wine is the UK.[ CITATION Win14 \l 1033 ] An emerging market for the Australian Wine is the Asian market, most notably China. The consumption of wine in the Asian market is increasing in leaps and bound. Additionally, consumer spending in these markets is expected to pick given an increase in the per capita income of these countries.[ CITATION Win171 \l 1033 ]The domestic consumption of alcoholic beverages, in general is declining in Australia.[ CITATION Har17 \l 1033 ]However, the millennial generation is driving the growth of wine consumption in the rest of the world, especially the consumption of premium wine.
Analysis of the Australian Wine Industry_3

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