International Strategic Management of Penfolds Wine

RUNNING HEAD: International Strategic Management
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Penfolds wine
International Strategic Management
(Student Name)
1/19/2019

International Strategic Management 1
Table of Contents
Introduction................................................................................................................................2
Background of the company...................................................................................................2
Macro Environment Analysis....................................................................................................2
Micro Environment Analysis.....................................................................................................3
Porters Five Forces Analysis..................................................................................................3
SWOT Analysis......................................................................................................................4
Competitive Advantage of company..........................................................................................4
Generic Strategy of Porters........................................................................................................5
Ansoff Matrix.............................................................................................................................5
Recommended Strategies...........................................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

International Strategic Management 2
Introduction
The Wine industry has huge growth in the market due to their great demand by the
consumers. For their quality as well as consumer values, the wine industry in Australia is one
of the famous around the world and has a long history for it due to the reason of many
physical, social, and human environmental reasons. One of the oldest Australian wine brand
Penfolds plays a prominent role in the wine market. The company has fifty percent market
that made them as a leading company in Australia (Varsei and Polyakovskiy, 2017).
In the following part, there will be a detailed discussion on the marketing strategies adopted
by the company that made them strong in the competitive market and the way they can
improve if they are lagging in such strategy.
Background of the company
The company Penfolds is the oldest wine brand of Australia that was established in the
century of mid-19th by the immigrants as well as medical doctor Rawson Penfolds. In the
starting, the wine was grown for the purpose of medical and the manufacturing of equipped
wine as well as other drinks (Dunn, 2018). The company has acquired a number of vineyards
within the most esteemed viticulture areas of Australia that also include the Barossa Valley
and McLaren Valley. The company has received great national as well as international
acclaim that includes:
 Winemaker of the Year award in 1999 and 2000.
 Winery of the Year since 2012.
 Winemaker of the Year award in 2014

International Strategic Management 3
The company is mainly focusing on four regions which are America, New Zealand and
Australia, Europe, Asia as well as the Middle East. The company has remained a celebrated
aspect of the culture of Australia for 170 years and it is also expected to continue prospering
in the foreign market (Croidieu, Rulingand Boutinot, 2016).
Macro Environment Analysis
Political
The regulation level in the wine industry is very high in Australia. Such an industry is heavily
regulated. It is one of the most complicated industries with respect to the interstate commerce
due to the variety that individual states restrict the sales as well as shipment of the alcoholic
beverages across the lines of states (Costello, Smith and Lane, 2018).
Socio-cultural
While the liquor is vital to the customs of Australia, in taking beer as well as wine is not only
an activity of individual of the everyday life of their individuals other than it is also an
essentially common one. The researchers represent a strapping connection involving the
choice of using up as well as identity. The drinking of wine is not a stuff of option of the
individual but it is also a substance of edifying savour.
Economic
The wine industry is one of the major contributors to the economy of the country that
generating around more than $ 110 billion in revenue on yearly basis. Over 1.2 million
individuals are employees in the product sales as well as the distribution of the products.
Australia has a high growth rate with a low inflation rate that makes the country more in
favor of the wine industry (Zhijing et al., 2018).