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

Case study - Essay ExampleAlso, the tradition associated with a wine creation a family wine with 238 years of history and existence the third olderest wine maker in Germany brings charm to the product which could be its advantage over its competitors in the market. Johann is capitalizing on this by holding events in their estate to ensure customer retention. b. Weakness expensive. Quality comes at a wrong and this makes the company hesitate to exaggerate its reach in the market because of the cost associated not only in producing the wine, but also in marketing it (a tour in US be EUR 5,000). c. Opportunities the liberalization of the wine market provides an opportunity 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 brand-new World offering comparable taste at a lower price serves as a very potent threat to Fitz-Ritter. PESTEL a. Political EU is protective of the German wine man ufacturer where it subsidizes the industry. The residue of the George Marshall fund serves as financing assistance to wine manufacturers such as Fitz-Ritter which could help still 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 ruin to the industry. c. Social there is growing market for the Fitz-Ritters wines especially for middle class who would like to partake the wine to start out 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 further improve their wine making. e. Environmental acreage for growing word of mouths in Germany has already been allocated. Its implication makes the wine industry less combative because it meant they have to squeeze more wine from the grape to lower the price which has a devastating effect on quality. f. Leg al EU government is on Germanys wine makers side being protective of the industry from the foreign competition. Fitz-Ritters system 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 survive in a highly competitive wine billet? 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 little leverage on the company. c. Rivalry Among Existing Firms there may be rivalry among 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