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Analysis of the Australian wine industry. This report is about contextual analysis of the Australian competitiveness and investment attractiveness of the wine industry.

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Title : Analysis of the Australian wine industry Word Count : 2301 words Content 1. Abstract -------------------------------------------------------------------------------- 3 2. Introduction ---------------------------------------------------------------------------- 3 3. Part A: 3.1 Porter's National Diamond ------------------------------------------------ 3 3.1.1Factor Conditions: ------------------------------------------------ 3 3.1.2 Related and Supporting Industries ---------------------------- 4 3.1.3 Demand Conditions ----------------------------------------------- 4 3.1.4 Strategy, Structure and Rivalry --------------------------------- 4 3.1.5 The role of government ------------------------------------------ 5 3.2 Porter's Five Forces: --------------------------------------------------------- 5 3.2.1 The threat of the entry of new competitors ---------------- 5 3.2.2 The intensity of competitive rivalry --------------------------- 5 3.2.3 The threat of substitute products or services -------------- 6 3.2.4 The bargaining power of customers (buyers) -------------- 6 3.2.5 The bargaining power of suppliers- -------------------------- 6 4. Part B 4.1 Critical Evaluation on Australia Wine Industry. ----------------------- 7 5. Conclusion: ------------------------------------------------------------------------------- 7 6. Reference: -------------------------------------------------------------------------------- 8 1. Abstract This report is about contextual analysis of the Australian competitiveness and investment attractiveness of the wine industry. In this report there are 2 parts, Part 1, which conclude country specific analysis are explained using Porter's National Diamond and Porter's Five Factor. The second part of the report include the critical analysis for the Australian wine industry based on the argument of Porter's National Diamond in Part 1 of this report. 2. Introduction In early 1970s, with the leading of Europe as the major wine producer, the new word wine is already starting to produce bulk wine in various qualities. The Australian wine industry has experienced remarkable change in the mid-1980s, and that leads to today's Australia Wine industry, which producing 1,683,643 tonnages of grapes, and ranking world's sixth largest wine producer, and world fourth largest exporter for wine. ...read more.


Large corporate like Wine Australia was established by government statutory authority in 1981 to provide strategic support to the Australian wine sector. In December 2010 Government had even try to reduce export approval fee from $20.90 reduced to $13.20 for VI1 Certificate, Permit fees for WEA Users are from $43.70 reduced to $37.95, and from $60.65 reduced to $52.80 for Non-WEA Users. This means that government had put an eye on the wine industry, and is willing to provide support. 3.2 Porter's Five Forces: Below are the descriptions for Investment Attractiveness using porter's five factor model. 3.2.1 The threat of the entry of new competitors Australian wine in domestic market are untreated by imported wine in sales, with 429.9ML and 62.2ML sales respectively in 2009, but competitors in international market are fierce. In US market, Australian wine is facing competitors against New World wines such as New Zealand, South Africa and Chile. These New World producers are trying to increase entry barriers by operating on large volume and taking advantage of economies of scale. In the present China had produces more wine than Spain and Portugal combined with stock already up in shelf of supermarkets in the West, competing successfully against New World wines from countries such as Chile. But consumers at the present still prefers imported wine, as they had mindset of imported wines are better in quality. Australia is expected to face more treat of new competitors in the future, as the new world wine continuing to develop in a fast phase, but with all the support from government and natural resources, the potential is much worth it. ...read more.


Government also supports them in international market, such as EU Agreement to enable Australian winemakers to have better excess in European market. 5. Conclusion: Australian Wine Industry had proven its potential in international market, as well as its' capacity to meet the demand. The demand for wine is expected to be continued to rise in the near future as younger consumers are adopting a new life style. In order to meet their bargaining power, good quality wine with affordable price is highly demand. Australia had met all the requirements to enter the market and the industry itself is still full of potential to go one step further into globalization on wine market. 6. Reference: Invest In Australia (2011) Australian Wine and Liquor Industry. Available at http://www.investinaustralia.com/industry/wine-and-liquor/australian-wine-and-liquor-industry (Accessed: 17 Jan 2011). Winediva Geographical indications - Summary statistics. Available at http://www.winediva.com.au/regions/regions2.asp (Accessed: 17 Jan 2011). Caroline Gunning-Trant (2010) Australian wine grape production projections to 2011-12. Available at http://www.abare.gov.au/publications_html/crops/crops_10/winegrapes.pdf (Accessed: 17 Jan 2011). Australian Government (2008) Wine overview. Available at http://www.austrade.gov.au/Wine-overview/default.aspx (Accessed: 17 Jan 2011). nxherald.co.nz (2010) Australian wine sector tries to stop oversupply. Available at http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10624448 (Accessed: 17 Jan 2011). Julia Angove WINE AUSTRALIA: LOOKING TO THE FUTURE. Available at http://www.wineaustralia.com/australia/Portals/2/MediaReleases/Media%20release%20-%20Wine%20Australia%20name%20change%2009122010.pdf (Accessed: 17 Jan 2011). Jessica Pater (2010) CHANGES TO WINE AUSTRALIA EXPORT APPROVAL FEES. Available at http://www.wineaustralia.com/australia/Portals/2/MediaReleases/Industry%20update%20-%20Export%20approval%20fees%20-%20Dec%202010.pdf (Accessed: 17 Jan 2011). Winebiz. Available at http://www.winebiz.com.au (Accessed: 17 Jan 2011). National Farmer's Federation Farm Facts. Available at http://www.nff.org.au/farm-facts.html (Accessed: 17 Jan 2011). Andruz Marky (2011) Australia Wine Agents Fix Global Demand. Available at http://ezinearticles.com/?Australia-Wine-Agents-Fix-Global-Demand&id=4328728 (Accessed: 17 Jan 2011). Christine Hand (2010) The Australian Wine Industry: Export Profile 1995-2009. Available at http://www.suite101.com/content/the-australian-wine-industry-export-profile-1995-2009-a294892 (Accessed: 17 Jan 2011). ?? ?? ?? ?? 1 ...read more.

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