Table of Content Page • SWOT Analysis (Question 1)_____________________________ 1-2
• Value Chain (Question 2)_____________________________ 3
• Competitive Strategies (Question 3)_____________________________ 4
• Recommendation (Question 4)_____________________________ 5
SWOT analysis.
Question 1
Strength
One of the strongest strength that E. & J Gallo Winery had is they Gallo Winery is an privately owned, family operated corporation and also they are practicing a low cost mass production strategy. The E. & J. Gallo Winery has an excellent marketing strategy to create awareness for one of their famous low-end white wine- Thunderbird. They were using radio broadcast as a part of their strategy to market the Thunderbird. As a result, they succeed on what they had planned as Thunderbird was on the tops of the sales chart in many inner city and low-income neighborhoods. Another strength own by E.& J Gallo Winery is that they have a strong brand name and image which is currently named as a quality label.
Besides this, Gallo Winery is practicing a vertical integration strategy. This meant they grew their own grapes, made their own wine, controlled their sales and marketing and owned and operated its wine distributorships. Gallo owned the wholesaler distributorship in about 10 geographic markets. Another big advantage that E. & J. Gallo possesses is their exclusive access to high grade grapes. They have planted more than 400 varieties in different grape-growing region in California for its ability to produce fine table wines. Their brand portfolio is among the strongest in the industry with more than 75 brands in its product lineup and was exporting wines to countries all over the world.
Weakness
Gallo’s major competitive weakness is they are well known as a low-end maker of fortified wine labels with screw-top