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Australian Wine Industry Rebuttal. AGEC 4433 Group 4 Wednesday, April 21, 2010. Participating Members. Haynes, Blair Lee Sprague, Brendan Edward Bardwell, Justin R. Reed, Sarah Elizabeth Simonsen , Andrew W Brown, Kayla Lynn McDowell, Misti Mechelle Barrios, Rachel Marie
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Australian Wine Industry Rebuttal AGEC 4433 Group 4 Wednesday, April 21, 2010
Participating Members Haynes, Blair Lee Sprague, Brendan Edward Bardwell, Justin R. Reed, Sarah Elizabeth Simonsen, Andrew W Brown, Kayla Lynn McDowell, MistiMechelle Barrios, Rachel Marie Ingram, Jane Ellen Landry, Colin L Dimm, Kevin E Jeanpierre, Brandon Ray Holley, Carl Webb
Objectives Australian Wine Industry • Goals • Constraints • Central Problem • Possible Alternatives • Best Alternative
Goals Group 10: • Strategy 2025 • Establish themselves • Become more recognized world-wide • Create distinguished brands • Gaining Market Share Our Interpretation: • In addition to meeting the requirements of Strategy 2025 • To continue to grow, create a dynamic plan to maintain market share • Staying ahead of the consumer demand curve
Constraints Group 10: Our Interpretation: Changing consumer demand across the globe Political Policies, specifically the U.S. Tariffs Interstate Commerce • Climate • British Heritage • Price Competition
Central Problem Group 10: Our Interpretation: Combination of many factors Over production since 2000 Image problems Changing consumption patterns Other New World Competition Rising production cost • Over supply and under consumption
Possible Alternatives Group 10: Our Interpretation: Farmers could become dependent on these subsidies/bailouts Learning curve/costs of producing alternative agricultural products Also exploring into premium brands Good for long term growth • 1. The government of Australia to use subsidies and bailouts that would encourage wine makers to shift production to other crops and in turn slow down production. • 2. Australian wine makers getting rid of vines and opening up their land to alternative agricultural products. • Diversifying their brands that are exported to the United States. • Australian wine industry emerging in the new market of Asia.
Our Interpretation of Best Alternative “Australian wine industry emerging in the new market of Asia.” Entering into the Asian market is a good idea, but is better suited for long term growth because it could be more costly and could behold unforeseen problems. However, by recreating their image they will be able to compete alongside premium brands within the U.S. and thus solve the problems of reestablishing themselves as a higher quality producer of wine.