Swot Analysis Of Australian Wine Industry

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1. SWOT Analysis of the Australian wine industry for the US wine market
Strengths of Australia over US:
• Australia innovation of harvesting using the Drip irrigation, mechanical harvesting and mechanical pruners reduces labor costs.
• Its fermentation and aging to occur in huge by using computer controlled and the use of stainless steel tanks
• Innovation of “wine-in-box” saved shipping costs and convenient for the customers refrigeration
• Australia ensured vintage to vintage consistency that branding required and created hierarchy from 9$ to 185$
• Its fruit driven wines easy too please customers
• Land prices are cheaper in Australia than US
• Supply of strong brands at good price/quality ratio
Weakness:
• Australia established its image as cheap wine due to its willingness to lower price aggressively.
• Cost increase in water and energy increased the production cost.
• 7% oversupply of fruits.
Opportunity:
• Australia’s step in middle segment wines (5$ -8$) which are preferred by US
• The consumption of premium wines increased from 150 million in 1985 to 600 million liters by 20...

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