BSNS 7360 Assignment 3: Ata Rangi Martinborough Entry Strategy Report

This report focuses on Ata Rangi Martinborough, a family-owned wine producer from New Zealand, examining its international business entry strategy. It highlights the company's strengths, including high-quality wine, family reputation, and diverse product range, while also addressing weaknesses like potential cultural instability in its global expansion and the lack of a strong digital presence. The report analyzes Ata Rangi's competitive landscape, identifying key competitors in the Australian and New Zealand wine industries. It details the company's expansion into North America, Europe, and emerging Asian markets, discussing strategic goals to increase global presence and sales. The report concludes that Ata Rangi's emphasis on quality, adaptation to climate changes, and strategic expansion into Asian markets position it for continued success in the international wine market, despite facing strong competition. The report references several sources to support its findings.

Part 3: Overview of the Chosen Organization: Ata Rangi Martinborough
The company chosen for this report is Ata Rangi Martinborough. The company is a family
association since the 1980s and its members include a wide number of respected professionals of the
wine industry. Back in the 1980s, Clive Paton is known to have sold his dairy to finance his dreams
of purchasing a land for growing grapes and manufacturing wine. Although the land purchased was
stony, the dreams of Clive could not hold him back. The products of the organizations are primarily
centered around the production and selling of a wide range of wine products that have gained
immense reputation and popularity for its quality. The company has often been termed as the world-
class producer of the best quality wine made available today. The company is based out of the
Southern part of New Zealand, offers delivery of products at the door-step of their customers and
holds a 30-day return policy is the customer is unhappy with the quality of the products offered (Fine
Wine Delivery Company Limited, 2019).
The strengths of the company include high quality of wine, a family reputation that the
company is built on, its formulae include purity and authenticity from the family owned vineyards
and a diverse variety of wines to pick from. The company has also received numerous rewards for
the astonishing advancement in the field of wine production (Ata Rangi, 2019). The weaknesses of
the company include the structural and social instability that may be caused by the cultural
differences in the 25 countries that it has already expanded into. Another weakness is the inability of
the organization to make a digital web presence for its products and services which might lead to a
high number of problems in the days to come. Despite some of the pressing weaknesses, Ata Rangi
has found itself a large increase in the demand for wine products each year. With the global warming
issue, the New Zealand wine market estimates that the increase in the temperatures by even 1 or 2
degrees would assists in better production of grapes for the production of higher quality and quantity
of wine to meet the growing needs of consumers in different parts of the world (Bathgate, 2008).

Some of the leading competitors of Ata Rangi include the other wineries that are currently
functioning in Australia and New Zealand both. For example, Palliser Estate Winery, Tirohana
Estate, Poppies Martinborough and many more. The current international presence of Ata Rangi is
very strong and the organization is known to be doing pretty well in terms of popularity and business
functions both. Ata Rangi is well respected for its purity and high-quality wine supply in different
parts of the globe. Even though the organization has a high number of competitors in every country
that it has expanded into; however, it has survived to make an exceptional presence for itself over
time (BusinessNZ, 2019).
According to recent news articles, the company has successfully expanded its business in the
North American market, the European Countries and certain other Asian emerging markets such as
Russia, Thailand and others. The instability of the political and economic environment in these Asian
countries have often caused the company to cut down on the sales prices. However, with the
recovery in the pipeline, the company’s strategic vision is to increase its global presence and increase
its sales and profits to at least 60% in the years down the line. As emerging markets offer the most
promising results, Ata Rangi is vouching to expand its business line to other Asian countries like
China and Japan. It is estimated that the growth of the company with expansions will assist in the
achievement of the business objectives and meet goals that are set in. The European shores were the
first to receive the improved quality of wine products by organizations such as Ata Rangi (Baker,
2014).
To conclude, Ata Rangi has received a number of international awards and carries a strong
international presence especially in the North American and European markets. The changes in
climate are working in favor of the organization and it is estimated that the production and selling of
the products will increase over time. The strategic call for expansion in the Asian market is expected
to fetch exceptional results for the organization as a whole. Despite the presence of tough
competition from other Australian and New Zealand based wine companies, Ata Rangi has already

established a strong reputation for itself which is expected to assist in the formation of an
uncontended global presence. Ata Rangi is a family-owned and managed organization that has
stressed on quality over quantity and its wine manufacturers have alone received international
awards for excellence apart from the ones that the company has received for its exceptional
contribution to the wine industry across the world.

References
Ata Rangi. (2019). The Story. Ata Rangi Official Website. [online]. Retrieved from:
https://atarangi.co.nz/the-story/. [Last Accessed: 11th May 2019]
Baker, G. (2014). New Zealand Export and Trade Handbook: NZ Market. Export and Trade NZ.
[online]. Retrieved from: https://exportandtrade.co.nz/article/living-vision. [Last Accessed:
11th May 2019]
Bathgate, A. (2008). New Zealand Wine Industry Upbeat about Global Warming. Reuters. [online].
Available at: https://www.reuters.com/article/environment-newzealand-wine-dc/new-zealand-
wine-industry-upbeat-about-global-warming-idUSWEL16911720080214?sp=true. [Last
Accessed: 11th May 2019]
BusinessNZ. (2019). Ata Rangi Winemaker Congratulated. BusinessNZ. [online]. Retrieved from:
https://www.wecc.org.nz/advocacy/media-releases/wecc/ata-rangi-winemaker-congratulated.
[Last Accessed: 11th May 2019]
Fine Wine Delivery Company Limited. (2019). Buy Online Ata Rangi Wines from Martinborough
Wineries. [online]. Retrieved from: https://www.finewinedelivery.co.nz/winery/ata-rangi. [Last
Accessed: 11th May 2019]