Essays on Australian Exports: Spirits and Wines Case Study

Download full paperFile format: .doc, available for editing

The paper "Australian Exports: Spirits and Wines " is an outstanding example of a business case study.   The study majors on the Australian Exports: Spirits and Wines and whether the organisation should export its products in Latvia or establish a branch company there. This study’ s objective is also to explain the profitability of the alcoholic beverages industry using porter’ s five forces model. The porter’ s five forces model gives the background of the industry’ s attractiveness and sustainable profitability. The five forces will also help establish whether the Australian organisation will make a profit or not in the alcoholic beverage industry.

For the company to do well in the competitive market, there are business-level strategies it needs to employ. There is a particular business-level strategy that the company needs to implement in order to compete in the market. Porter’ s five forces and business level strategy Introduction The alcoholic beverage industry is a broad and very competitive business. There are many companies that deal with the production and distribution of wine and beer. A company may choose to export their products to other companies or establish branch companies in other countries.

The Australian Exports: Spirits and Wines may choose to export their alcoholic products to Latvia. The company also may choose to establish branches in Latvia where they produce their wine and beer in the country and sell it there. Before the company makes this decision, they need to analyse some factors and then make a critical decision on the way to take (Australia | Latvia – Exports Actual Data - Historical Charts 2015). Porter’ s five forces analysis. The start-up capital involved in starting up a firm that produces alcoholic drinks are quite substantial, and many people fail to raise it.

For a new company to carry its production well, they need to raise money for acquiring current technology in order for them to compete with the Australian Exports: Spirits and Wines. Some businesses find it hard to meet legal requirements. hence minimizing the threat of new entrants to the alcoholic beverages industry in Latvia. The Australian Exports: Spirits and Wines can overcome the threat of new entry by coming up with a new way of marketing its products hence attracting more attention from the consumers.

Another tool that Australian Exports: Spirits and Wines should employ to overcome the issue of new entries is the economies of scale. It entails high quantity productions of alcohol hence reduced the cost of production. It can also differentiate its products so as to create a brand that people will have an interest and appreciate. The alcoholic industry gets a boost in the attractiveness aspect since the threat of new entrants is minimal. The bargaining power of purchasers increases when there are few distributors in the market, when it is little or no new competition emerging and when the distribution industry grows faster than the manufacturing sector.

In the Australian alcoholic beverage industry, the bargaining power of buyers is currently high due to the existence of a vast variety of alcoholic products like the Latvijas Balzams Company that also deals with wines and beer (www. cube. lv, 2015). The presence of the various alcoholic products from different firms are providing an extensive range for consumers to choose from. Competition is stiff in the alcoholic drinks industry due to the high bargaining power of buyers.

Distributors control the prices based on the profit margin they require in this industry. The distributors also limit new competition hence the consumer power force is negative for the alcohol beverage industry in Australia. High bargaining power of buyers discourages the possibility of entering into business in the alcohol industry.

Bibliography

Atrium Incorporators – Setting Up a Limited Liability Company in Latvia – Advantages . 2015. Atrium Incorporators – Setting Up a Limited Liability Company in Latvia – Advantages . [ONLINE] Available at: http://www.atrium-incorporators.com/setting-up-a-limited-liability-company-in-latvia/.[Accessed 15 April 2015].

Australia | Latvia - Exports - Actual Data - Historical Charts. 2015. Australia | Latvia – Exports Actual Data - Historical Charts. [ONLINE] Available at: http://ieconomics.com/exports-latvia-australia. [Accessed 15 April 2015].

Australia Imports from Latvia (Monthly, NSA, AUD). 2015. Australia Imports from Latvia (Monthly, NSA, AUD). [ONLINE] Available at: http://ycharts.com/indicators/australia_imports_from_latvia. [Accessed 15 April 2015].

Complementors (Sixth Force of Porter's Five Forces) • The Strategic CFO. 2015. Complementors (Sixth Force of Porter's Five Forces) • The Strategic CFO. [ONLINE] Available at: http://strategiccfo.com/wikicfo/complementors-sixth-force-of-porters-five-forces/.[Accessed 15 April 2015].

Cox, J., & Bridwell, L. (2007). Australian companies using globalization to disrupt the ancient wine industry. Competitiveness Review: An International Business Journal, 17(4), 209-221.

Concurrent Alcohol and Tobacco Dependence. 2015. Concurrent Alcohol and Tobacco Dependence. [ONLINE] Available at: http://pubs.niaaa.nih.gov/publications/arh26-2/136-142.htm. [Accessed 21 April 2015].

Cuganesan, S., Guthrie, J., & Ward, L. (2010, December). Examining CSR disclosure strategies within the Australian food and beverage industry. In Accounting Forum (Vol. 34, No. 3, pp. 169-183). Elsevier.

Latvia country brief - Department of Foreign Affairs and Trade . 2015. Latvia country brief Department of Foreign Affairs and Trade . [ONLINE] Available at: http://www.dfat.gov.au/geo/latvia/Pages/latvia-country-brief.aspx. [Accessed 15 April 2015].

Latvia | Data. 2015. Latvia | Data. [ONLINE] Available at: http://data.worldbank.org/country/latvia. [Accessed 15 April 2015].

Latvia Business Confidence | 2010-2015 | Data | Chart | Calendar | Forecast . 2015. Latvia Business Confidence | 2010-2015 | Data | Chart | Calendar | Forecast . [ONLINE] Available at: http://www.tradingeconomics.com/latvia/business-confidence. [Accessed 15 April 2015].

LIAA. 2015. LIAA. [ONLINE] Available at: http://www.liaa.gov.lv/en. [Accessed 15 April 2015].

Manufacture of Food Products and Beverages in Latvia. 2015. Manufacture of Food Products and Beverages in Latvia. [ONLINE] Available at: http://www.buscongroup.com/article.php?ELEMENT_ID=45. [Accessed 15 April 2015].

MFA of Latvia. 2015. MFA of Latvia. [ONLINE] Available at: http://www.mfa.gov.lv/en/.[Accessed 15 April 2015].

Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 86(1), 25-40.

Porter, Michael E. Competitive advantage of nations: creating and sustaining superior performance. Simon and Schuster, 2011.

Portals, B. (2015). Tobacco Suppliers in Latvia - Tobacco 1.com. [online] Tobacco1.com. Available at: http://www.tobacco1.com/tobacco-suppliers/latvia.html [Accessed 20 Apr. 2015].

Republic of Latvia and the IMF -- Page 1 of 12. 2015. Republic of Latvia and the IMF -- Page 1 of 12. [ONLINE] Available at: http://www.imf.org/external/country/LVA/. [Accessed 15 April 2015].

Smith, Amber A., Alan D. Smith, and William T. Rupp. "Strategic insights into the critical success factors online for-profit educational providers: case study." International Journal of Business Information Systems 17.1 (2014): 1-32.

The World Factbook. 2015. The World Factbook. [ONLINE] Available at: https://www.cia.gov/library/publications/the-world-factbook/geos/lg.html. [Accessed 15 April 2015].

VID - Taxes . 2015. VID - Taxes . [ONLINE] Available at: https://www.vid.gov.lv/default.aspx?tabid=8&id=6666&hl=2&mod=33. [Accessed 15 April 2015].

www.cube.lv, C. (2015). AS Latvijas Balzams. [online] Lb.lv. Available at: http://www.lb.lv/en [Accessed 20 Apr. 2015].

Download full paperFile format: .doc, available for editing
Contact Us