Marketing Communications
1 Introduction
The purpose of writing this report is to exploring new business opportunities overseas for a multinational company. The company choose Chilean wine as an option to start the business. In order to evaluate the attractiveness of Chilean wine industry, a specific analysis on the Chilean Wine industry was conducted by applying the Porters National Diamond Model and two possible market entries.
The Chilean Wines have ranked very highly in the world, it’s the world’s eighth largest wine producer and the fifth largest exporter, reaching a market share of 8 per cent by volume of the global international wine market at the close of 2010. (International Organisation of Vine and Wine, 2010) However, 70percent of Chile’s wine production were exported, making it the world’s most globalized wine industry, with great flexibility, innovation and a long-term commitment to quality and service second to none. Chilean wines are known as the country’s most emblematic and best known world wine ambassador by having 150 destination countries and 1.5 billion consumers per year. (ODEPA , 2012)
Table World Wine Production
Country
TH HL
Italy
France
Spain
USA
Argentina
Australia
Chile
South Africa
Germany
China
Portugal
New Zealand
Others
Total
48
46
33
21
12
12
10
10
9
8
6
2
51
266
(International Organisation of Vine and Wine, 2010)
Table Primary wine exporting countries
Country
Thousands of HL
Italy
Spain
France
Australia
Chile
Germany
USA
South Africa
Argentina
Portugal
New Zealand
Others
Total
19
14
13
8
7
4
4
4
3
2
1
8
86
(International Organisation of Vine and Wine, 2010)
Table Wine exports by Country of Destination
Quantity (1000 Liters)
Value (Thousand US dollars)
2010
2011
2012
2010
2011
2012
U.S.
118,682
129,989
156,032
241,699
273,258
300,599
U.K.
123,234
107,474
101,744
236,219
234,548
228,072
China
60,529
35,339
64,091
82,574
91,800
144,808
Japan
35,428
The purpose of writing this report is to exploring new business opportunities overseas for a multinational company. The company choose Chilean wine as an option to start the business. In order to evaluate the attractiveness of Chilean wine industry, a specific analysis on the Chilean Wine industry was conducted by applying the Porters National Diamond Model and two possible market entries.
The Chilean Wines have ranked very highly in the world, it’s the world’s eighth largest wine producer and the fifth largest exporter, reaching a market share of 8 per cent by volume of the global international wine market at the close of 2010. (International Organisation of Vine and Wine, 2010) However, 70percent of Chile’s wine production were exported, making it the world’s most globalized wine industry, with great flexibility, innovation and a long-term commitment to quality and service second to none. Chilean wines are known as the country’s most emblematic and best known world wine ambassador by having 150 destination countries and 1.5 billion consumers per year. (ODEPA , 2012)
Table World Wine Production
Country
TH HL
Italy
France
Spain
USA
Argentina
Australia
Chile
South Africa
Germany
China
Portugal
New Zealand
Others
Total
48
46
33
21
12
12
10
10
9
8
6
2
51
266
(International Organisation of Vine and Wine, 2010)
Table Primary wine exporting countries
Country
Thousands of HL
Italy
Spain
France
Australia
Chile
Germany
USA
South Africa
Argentina
Portugal
New Zealand
Others
Total
19
14
13
8
7
4
4
4
3
2
1
8
86
(International Organisation of Vine and Wine, 2010)
Table Wine exports by Country of Destination
Quantity (1000 Liters)
Value (Thousand US dollars)
2010
2011
2012
2010
2011
2012
U.S.
118,682
129,989
156,032
241,699
273,258
300,599
U.K.
123,234
107,474
101,744
236,219
234,548
228,072
China
60,529
35,339
64,091
82,574
91,800
144,808
Japan
35,428