GLOBAL WINE INDUSTRY Harvard Case Solution & Analysis

GLOBAL WINE INDUSTRY Case Solution

DISTRIBUTION SYSTEM OF THE WINE INDUSTRY:

The distribution system of the global wine industry is the most critical function of the organizations of the industry as it is the most dominantly a centralized system. The distribution system of the industry is also one of the most regulated system as compared to any other industries that operate in the markets all over the world.

Part of it is due to the heavy taxations of the governments of the country where the markets are attractive and offer massive opportunities for the organizations by launching themselves and operating in the region. On the other hand, the other part of it is to exert more control on the organizations and the industry as a whole.

There are three most critical segments that the wine organizations tend to target more specifically or the distribution of their products and they include:retail stores, dealers and super marts. There are several other means and targets for the organizations in terms of distribution and selling of products and they are clubs, restaurants and pubs depending upon the market and the environment they operate in.However, there are several issues that the managements of the organizations are also facing in terms of challenges as per the distribution network of the industry is concerned.

ISSUES IN THE DISTRIBUTION SYSTEM:

There are multiple issues in the distribution system of the global wine industry and this also affects the performances of the companies negatively in terms of revenues and profits. However, the smaller entities and companies are the one suffering due to the deficiencies in the system. Some of the issues are mentioned below:

THE DECREASING PERCENTAGE OF DEALERS:

The constant decrease in the global population of the dealers and retailers of the wine industry is one of the most critical issues for the managements of the organizations that operate in the industry as the distribution system of the wine industry is a centralized system and one supplier mostly deals and operates diverse products of these different organization at its stores. As a result, this will likely make the competition tougher and the survival of the smaller local entities will be difficult due to limited shelf spaces.............

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