Vincor International Analysis
Vincor International Analysis
Vincor’s Strategy Vincor International goal is to become one of the top five wine companies in the world in terms of earnings. In order to attain this goal they have implemented a corporate strategy that focuses on using their existing powerful position in market to help them developing sales, marketing, distribution capabilities on an international scale. The strategy also includes acquiring new wineries and wine brands in new emerging region in the wine market also called “New World regions”(Vincor, 2005) throughout the world. More precisely Vincor International strategy for growing the market shares involved the six following strategic actions: “(1) emphasizing the development, sales and marketing of wines in the fastest growing segments of the market, particularly the premium wine segments; (2) continuing to participate in the premium wine category through the development of premium brands that we own; (3) expanding the sales and distribution reach of our brands into regions which are supportive of New World wines; (4) continuing to complete acquisitions of premium branded wine companies in New World wine regions; (5) expanding the supply of premium grapes and, in particular, Canadian grapes to satisfy the growing demand for premium VQA wines; and (6) developing ice-wine into an international luxury product, capitalizing on the reputation of Inniskillin.” (Vincor, 2005) As for the “New world” (Vincor, 2005) expansions, Vincor strategic actions involve in growing in earnings are to improve operating income by acquiring new wineries and rationalizing and integrating the operations. This will also permits the expansion of the company’s product line and the expansion of the company’s currents brands by providing new distribution opportunities.
Porter’s Five Forces Model
Risk of Entry by potential competitors:
Vincor International should not be overly threatened by the entry of potential competitors in their market. This is because
Vincor’s Strategy Vincor International goal is to become one of the top five wine companies in the world in terms of earnings. In order to attain this goal they have implemented a corporate strategy that focuses on using their existing powerful position in market to help them developing sales, marketing, distribution capabilities on an international scale. The strategy also includes acquiring new wineries and wine brands in new emerging region in the wine market also called “New World regions”(Vincor, 2005) throughout the world. More precisely Vincor International strategy for growing the market shares involved the six following strategic actions: “(1) emphasizing the development, sales and marketing of wines in the fastest growing segments of the market, particularly the premium wine segments; (2) continuing to participate in the premium wine category through the development of premium brands that we own; (3) expanding the sales and distribution reach of our brands into regions which are supportive of New World wines; (4) continuing to complete acquisitions of premium branded wine companies in New World wine regions; (5) expanding the supply of premium grapes and, in particular, Canadian grapes to satisfy the growing demand for premium VQA wines; and (6) developing ice-wine into an international luxury product, capitalizing on the reputation of Inniskillin.” (Vincor, 2005) As for the “New world” (Vincor, 2005) expansions, Vincor strategic actions involve in growing in earnings are to improve operating income by acquiring new wineries and rationalizing and integrating the operations. This will also permits the expansion of the company’s product line and the expansion of the company’s currents brands by providing new distribution opportunities.
Porter’s Five Forces Model
Risk of Entry by potential competitors:
Vincor International should not be overly threatened by the entry of potential competitors in their market. This is because
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