Global & International Business Contexts Essay Example | Topics and Well Written Essays - 2250 words

Global & International Business Contexts - Essay Example Figure 1: The Ranking of Australian Wine Industry in the Global Market Source: (Australian Wine and Brandy Corporation, 2006). Hence, it is quite evident that the Wine Industry due to its increasing contribution has gained a significant position in the Australian economy and the world economy as well. However, the global outlook of the industry has changed much in the recent years. Noteworthy, the industry in its long term periodisation has witnessed numerous fluctuations, offering various challenges and opportunities to its contributors. To be precise, the Australian Wine Industry similar to any other industry, also posses few major opportunities and drawbacks which in turn affect the participating companies. The discussion of the report therefore shall focus on the analyses and the identification of the business opportunities and the challenges laid by the industry as a result of the influences of various factors from a business perspective. The analyses of Australian Wine Industry in this case shall be conducted with the assistance of Porter’s National Diamond model and Product Life Cycle framework. Hence, the aim of the report shall be to suggest certain significant strategies to the company willing to establish its business in the Australian economy, i.e. The F.LLI Gancia & Co. Company Overview Gancia, propounded by Carlo Gancia in 1829, is in the present context one of the most renowned leaders in the Italian wine market. The company today serves a few of the most royal blend of wines such as the Piedmontese wines to its targeted market including Japan, Portugal, Belgium, Russia, China, Korea, France, Finland and United States. The products which the company presently deals with are the Sparkling Wines, Wines, and Aperitifs. The company by its origin manufactures wine solely in its Italian farms comprising of 30 hectares of its own vineyards and 2000 of its controlled vineyards. However, the company deals with the aspects of marketing not only by s erving the national markets but also by exporting its products to the international markets (Gancia, 2009). With a point of view to expand its market to the Australian boundaries, the company shall consider the business opportunities along with the challenges existing in the Australian Wine Industry. The report thereby, shall emphasise on relating the target market trends with the current status of the company in order to suggest an appropriate strategic alliance for the company to enter the Australian Market. Contextual Analysis Porter’s National Diamond Model Figure 2: Graphical Representation of Porter’s National Model Source: (Dagmar Recklies, 2001). The Porter’s National Diamond Model exhibits four major variables related to the macro and micro economic conditions of an industry. They are the factor conditions, the demand conditions of the market, related supporting industries and firm strategy, structure and rivalry. These factors, as is evident from the a bove represented diagram, shall be elaborated in the paper further. Factor Conditions This