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PESTLE Analysis
The wine industry is highly intricate because of the nature of the product, which may have a high demand but is subject to restrictions in some places. As PESTLE analysis showed, macroenvironmental factors have a tremendous impact on this market. In terms of politics, governmental laws and regulations may restrict alcohol beverage distribution and sales through high taxes. Furthermore, people who have the power to lobby the legislative process can stop or facilitate the wine business. The countrys economic growth and unemployment rate define peoples purchasing capacity for this specific product. Technology is critical because it allows the implementation of new technologies in wine production and marketing, which is primarily done on the web. Legal factors are related to protecting consumer and employee rights. Lastly, since wine requires high-quality raw products, grapes, environmental conditions, and climate change play an essential role in this case.
D&G Analysis
Wine is an alcoholic beverage; hence, it is crucial to define the demographic features of the target population. For example, this product is likely more popular among older married couples with middle to high income, suggesting that these customers are likely college-educated. If one takes a global perspective, the demand is high. At the same time, the competition is intense, too, because the countries with favorable climates have companies producing wine of good quality.
Porters Five Forces
Porters five forces, which are competition, supplier power, buyer influence, the threat of new entrants, and the danger of substitution, help define potential dangers in an industry. In this industry, rivalry is high because there are many wine-producing firms worldwide. Still, many of them depend on external suppliers who can control product prices. Furthermore, customers define the demand for particular brands of wine. Since it is a relatively open market, the threat of new entry has increased. Moreover, other industries continue to produce new beverages that may have a better taste and effect on consumers, making them purchase new items instead of wine.
Strengths & Weaknesses
Like any market, the wine industry has its own strengths, weaknesses, opportunities, and threats. The strengths of this industry are high product demand and good distribution within the country. However, the weakness is that the fact that wine is an alcoholic beverage limits the legal age range of potential buyers.
Opportunities & Threats
The opportunities in the wine industry include recruiting loyal customers to a special group and offering them a premium membership in the company. As in any other business, the threat is competition from foreign rivals.
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