Case study Essay Example | Topics and Well Written Essays - 1000 words - 1

Case study - Essay ExampleAlso, the tradition associated with a booze be a family fuddle with 238 years of history and being the third oldest wine maker in Germany brings charm to the ware which could be its advantage over its competitors in the mart. Johann is capitalizing on this by holding events in their estate to ensure customer retention. b. Weakness expensive. Quality comes at a price and this makes the company break to expand its reach in the market beca put on of the cost associated not only in producing the wine, but too in marketing it (a tour in US costs EUR 5,000). c. Opportunities the liberalization of the wine market provides an chance for Fitz-Ritter to expand to other markets abroad that would widen its market and customer base. d. Threat new entrants in the market from the New World offering compar equal taste at a lower price serves as a very potent threat to Fitz-Ritter. PESTEL a. Political EU is protective of the German wine manufacturing business wher e it subsidizes the manufacture. The residue of the George Marshall fund serves as financing assistance to wine manufacturers such as Fitz-Ritter which could foster ease the financing of its expansion should the company decide to expand its operation. b. Economic competitors are flooding the EU market with comparable wines at a lower price which is devastating to the industry. c. Social there is increment market for the Fitz-Ritters wines especially for middle class who would like to partake the wine to piss the feeling of being in the upper class. d. Technological Johann is embarking on the training of his employees to upgrade their technological capability to gain ground improve their wine making. e. Environmental acreage for growing grapes in Germany has already been allocated. Its implication makes the wine industry less rivalrous because it meant they have to squeeze more wine from the grape to lower the price which has a devastating effect on whole step. f. Legal EU government is on Germanys wine makers situation being protective of the industry from the foreign competition. Fitz-Ritters strategy is basically to promote the quality of the product by stressing its history and tradition that it is a product of craftsmanship not by industrial process. This way, Johann is able to have a niche in the market. 2) What is Fitz- Ritters competitive advantage? How did the company manage to tolerate in a exceedingly competitive wine business? To better determine Fitz-Ritters competitive advantage, it would be helpful to consider Porters Five Forces of competition to see how it fared in the highly competitive wine business. a. Threat of New Entrants players from the New World are indeed a threat. They have comparable wines with lower prices. b. Determinants of Supplier Power Fitz-Ritter grows their own grape and makes their own wine and such, suppliers has very brusk leverage on the company. c. Rivalry Among Existing Firms there may be rivalry am ong the old wine makers in Germany and EU but the rivalry is not considered to be disastrous to the industry. The threat of rivalry is being brought by new players from the New World instead of the old wine makers. d. Determinants of Buyer Power Fitz-Ritter use exclusive distributor in the United States whom they can trust and Johanns mother help in the promotional aspect of the product by giving the products comparative advantage which is tradition, quality and history a face whom the customers can