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SPANISH VINES CASE STUDY

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Added on  2019-12-03

SPANISH VINES CASE STUDY

   Added on 2019-12-03

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SPANISH VINES
SPANISH VINES CASE STUDY_1
Table of ContentsOverview of the case.......................................................................................................................1Different Models..............................................................................................................................1PEST Analysis.............................................................................................................................1International market entry Approaches.......................................................................................1Greet Hofstede Model..................................................................................................................2STP Model...................................................................................................................................37 P’s Model..................................................................................................................................3Benchmarking Model..................................................................................................................4The Keller’s Equity Model..........................................................................................................5Porter’s Generic Strategies..........................................................................................................5Conclusion.......................................................................................................................................6References........................................................................................................................................7
SPANISH VINES CASE STUDY_2
OVERVIEW OF THE CASESpanish Vines Company is focusing on expanding its business operations by the meansof entering into international market of Columbia. In this regard, the case study will perform, aprecise analysis of the hindrance and challenges faced by the Spanish Vines while making thejudgement regarding entering into foreign market. Therefore, researcher through the means ofdifferent models and theories will evaluate different aspects that need to be taken care of by thetop level management of Spanish Vines while making the decision of entering into theColumbian market. DIFFERENT MODELSPEST AnalysisHerein, PEST analysis is conducted to evaluate external environment of Columbia whereCEO of Spanish Vines is planning to expand its business operations.Political: Spanish Vines has to abide by the regulations framed by the Columbiangovernment related to acquiring license, duty payment like VAT, Tax etc(Warburton,2010). Economical: Economy of Columbia is improving at a rapid pace which provides anappropriate opportunity for the Spanish vines to establish business and generate betteroutcomes. Social: People of Columbia are always in quest of different taste and preferences thus,CEO of Spanish Vines has the opportunity to offer wide range of flavourful vines in themarket and acquire advantage of high purchasing power of people.Technological: Cited firm has indulged in latest technological equipment’s to carry outproduction process which helps in saves time and costs effectively (Laxman and sari,2011). Findings:On the basis of above analysis it has been identified that, Spanish vines has to abidevarious rules and regulations in regards to Columbian government. Furthermore, constantlyimproving economic conditions has increased the purchasing power of the people which is goodsigns for Spanish Vines sales. Furthermore, advanced technology is helping the course of citedfirm in producing quality of wide range of Spanish vines to satisfy different needs and wants ofpeople. 1
SPANISH VINES CASE STUDY_3
International market entry ApproachesThere are different approaches through the means of which Spanish Vines can enter intothe foreign market of Columbia. Following are the approaches:Joint Venture: It is the most effective strategy for sharing the risks with similar companyin the foreign market. Furthermore, entry through this approach in international market ismuch easier than any other method. But contrary to this, dispute in partners can lead todevastating results for the operations of Spanish Vines in Columbia(Svensson, 2002). Franchising: It is another suitable option of entering into new market through the meansof licensing. Further, Spanish Vines can raise large amount of capital while opening itsfranchise in Columbia. But, the major drawback of this approach is that, there is noguarantee of investment. Manufacturing in foreign land: Spanish Vines can establish its plant in Columbia as wellas it can provide itself the tax benefit and create employment of the Columbian people.But setting manufacturing plant may lead to incur huge costs for the cited firm (Lopezand Fornes, 2015). Findings: By analysis international entry models it can be said that, there are different optionsavailable to the top level management of Spanish Vines to enter into Columbian market andgenerate demand for its products and services. According to the given case study, Spanish Vinesshould open its manufacturing unit in Columbia as it provides wide range of opportunities in thatsector. Further, this suggestion can be supported with the fact that, Columbian market has lowlabour costs which reduces major costs for the company. Greet Hofstede ModelHofstede model of cross cultural management consist of four different dimensions whichdistinguishes the values of one country from another. These dimensions are power distanceindex, individualism vs. collectivism, masculinity vs. feminity, uncertainty avoidance and longterm orientation. However, applying this model helps in illustrating that, individualism vs.collectivism helps Spanish vines in considering the actual relationship between people living indifferent society(Taguchi, 2013). While power distance illustrate how individual accept differentlevel of power which is evident among them. Furthermore, uncertainty avoidance is the otherdimensions which take place when individual accept risk. While, masculinity and feminity isanother dimension which states that extent to which society embraces masculine values against2
SPANISH VINES CASE STUDY_4

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