Israeli wines Case Study Solution
Situation analysis:
Golan Wines is one of the largest wine distributors in the Israeli market. Approximately, 38% of wine is exported to other countries, which generate high revenues and demand from the external markets. After being successful, Golan wines wants to enter into the market of China to expand the business and increase the profitability revenues. Irrespective of the fats, China is known to be the world's largest wine producer and consumer from previous two decades.
Furthermore, it has been determined that most of the wine consumption in China is not well modified due to lack of technology, seasonality, and poor soil conditions. They provide the small-class quality in low prices which seems to be harmful for the consumers. Moreover, the people consume it on special occasions such as wedding ceremony, golden anniversary and birthday parties. However, the Chinese use the old world wine which was designed up the ancient Greeks, and it was distributed for a long time by their supporting partners.
From the case analysis, it is identified that the Golan wines have an experience of thirty years since it founded; it has grown by providing high-quality wine to the public, which is most appropriate for the daily use.
Furthermore, it is expected that China’s market was growing rapidly. However, its cultural customization made it a very challenging and competitive market. The management of Golan wines identified and implemented a different set of strategies to properly exploit the potential of the fast-growing Chinese market.
Problem statement:
Golan Wines faced challenges in achieving the success in China. It identified that the Chinese consumers cannot distinguish the difference between cheap and expensive wines. Moreover, it is identified that the relationship between Israeli and China has historically been weak.
Business level strategy:
Golan wines has introduced the wine in the Chinese market by providing more comparable quality and cost of the product. The different design and packaging of the product which creates the change in the market and consumers was interest to test the product which is different from the daily routine.
Golan Wines is capable to implement the business level strategies by focusing on the overall cost leadership as well as setting the comparable price of the wine which would be easily affordable by the consumers and it should create the product frequency. The price of wine should be less as compared to the the competitors because Chinese are very pricing conscious as they always favor that product which saves their cost. Moreover, it is identified that the price of the French bottle in China is $4 and the management suggested to set the price of per bottle is $3.44 which is comparably lower than other brands.
From the case analysis, it is expected that the long-term goal of the Golan Wines is to take the competitive advantage in the Chinese market and expand the business to the large population of the China market. The company was mainly focused on the quality and price of the product which would be the computable factors among the competitors. Moreover, the interaction between two countries would give rise to more opportunities for the higher management to settle the business and make the differentiation among the competitors.
According to the previous record of Golan Wines, the company has an enormous market share in different countries except for China therefore, it is expected that it would gain strong response from the Chinese because Golan Wines is an excellent renewable brand in the industry. The functional decision would increase the Golan Wines’ profits and revenues in the long-term if the management settles in China. Moreover, the company would be able to achieve the desired targets to avail more opportunity to expand the business or increase the distribution.
Resources:
Golan Wines has various resources which would help it to compete with the competitive advantage and grab the market of China.
The natural resources of the company would help them to employ a value creating a strategy by outperforming competitors in the ingredients quality. However, it is expected that high-quality criteria would be implemented by making some teams and develop the Research and Development department by bringing quality to the process. Test the product thoroughly before distributing to the market check all the results of ingredients and distribute it after final approval.
Israeli wines Harvard Case Solution & Analysis
Moreover, the capability of the company would be highly considered between the different resources. It is expected that the capacity of the Golan Wines depends on the ability to extract and use the natural resources to produce good wine, it could be possible by using the high-quality assets and the company resources to create the smooth manufacturing. Furthermore, it is expected that the capabilities are implemented to reach properly in intended market.
Irrespective of the facts, Golan Wines has competitive advantages in the features of the product but as compared to the market it is far behind than the competitors, and in order to overcome this weakness, the management should utilize the resources to implement the best possible strategy with a view to gain the market share and customer’s strength.
Alternatives and evaluation:
From the case analysis, it is identified that the clients’ behaviors are changing due to having less knowledge of beverages. They only purchase the related product, which is connected with any favorite brand or by marketing material.......................
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