Spanish Vines: Colombian Market Entry Harvard Case Solution & Analysis

Symptoms:

The global vine industry has reached its maturity level, which is depicted by following symptoms.

  • Over the period of last 5 years, the overall industry growth has been considerably slowed down.
  • Over the period of last 5 years, there is a significant decrease in the number of retailers in the industry.
  • Large retailers in the industry have consolidated their products, due to which there is no increase in the product offerings in the industry.
  • Technological segment of the industry has reached its saturation point as there is no change or advancement in the technological sector of the industry.
  • Optimum demand for the products in the industry.

Analysis

Common Causes:

Following are the common causes faced by the top management of the company.

Pricing Model:

The top management of the company is unable to identify the optimal pricing model in order to deliver its products at competitive prices. Moreover, the top management of the company is unable to identify the optimal price at which the company could offer its products to the consumers as well as the price at which the top management of the company could optimize its profitability and revenues.

Innovation:

The top management of the company is unable to make necessary innovations in the products of the company as well as the top management of the company is also unable to identify the needs of the customers, which also becomes a hurdle for the company in order to innovate its products efficiently and effectively.

Competitors:

The top management of the company is unable to identify and evaluate the statistics of the competitors present in the Colombian wine market. In addition to this, the top management of the company is also unable to identify the strategies used by its competitors in order to grab the market. Thus, this creates hurdle for the company in making effective responsive strategies to compete strongly in the entire market.

Diversification:

The top management of the company is also unable to identify the possible and potential diversified products segments, which the top management of the company could offer in the Colombian market in order to capitalize a huge share in the entire industry. Thus, this also creates hurdle for the company in diversifying its product lines efficiently and effectively.

Global Expansion:

The top management of the company is unable to formulate effective strategies to fuel up the overall growth of the company by expanding the operations of the company world-wide. This also limits the overall growth of the company as well as this also limits the overall revenue and profitability of the company.

Primary Problem:

The primary problem of the company is to identify whether the Colombian market is a potential market or not, as well as, the problem is how to successfully tap into the Colombian market.

Supporting Facts

Following are the factors, which acted as a hurdle for the top management of the company in order to develop an effective strategy in order to tap into the Colombian market efficiently and effectively.

Consumer Attitudes:

The top management of the company is unable to identify the varying consumers’ contextual backgrounds in the Colombian market. The top management of the company is unable to identify the purchasing trends of the consumers present in the industry, as well as their attitude and perception towards purchasing wine.

The top management of the company is also unable to identify the degree of loyalty that the consumers show towards their brands as well as the percentage of disposable income they are willing to spend on purchasing wines. In addition to this, the top management of the company is also unable to identify the frequency of purchases of their products by the consumers.

Distribution Channel:

The top management of the company is unable to identify the optimum distribution channel through which the top management of the company should distribute its products effectively and efficiently. The top management of the company is unable to decide that whether the company should sell its products through small retailers or the top management of the company should sell its products through hyper stores.

In addition to this, the top management of the company is unable to simplify the overall distribution channel in order to increase the overall effectiveness of the distribution channel of the company. Moreover, the top management of the company is unable to identify and eliminate the non-value adding elements within the distribution channel of the company.......................

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