Global Wine Company Analysis

Global Wine is a France based wine manufacturing company that is World number two in this business. Their business is spread in 70 countries and has 15 brands altogether. Its business is divided into two parts, beer, and wine segments. More than 15000 people are employed by the company throughout the World. In this increasing and competitive market, they look at the World number 1 spot and the PR department is taking necessary steps to reach the goal.

Environmental Analysis

Alcohol is one of the oldest things used by mankind and it has different uses. The global alcoholic beverage industry was of an estimated value of $667 billion in 2004, and its largest market is Europe still now, and it holds almost 51% market of the World. Global Wine is one of the biggest players in the industry. Numerous local companies locally produce cheap spirits, and they have a really good market due to the immense popularity of the traditional brands. The merging of Pernod and Richard formed a company called Pernod Richard SA in the year 1975 and they became one of the top alcoholic beverage producers of the World.

It had more than 50 brands and in 2001 it acquired Seagram and subsequent popular brands which propelled their sales to another 1 billion $ more business and propelled the company in the third-largest company in alcoholic beverages producing companies. Their success further continued as they acquired Allied Domecq for around $ 14 billion in the year 2004. This deal further added more success to the cap of the company as they hold rights for the brands like Montana, Mum, and Perrier Joust, and the company was on the route to becoming the number 2 company in liqueur.

In recent times the company is trying to reach the number one spot and they are now the leader in the quickly growing markets of Brazil, Russia, India, and China, Now the company has strongholds in markets like Pacific countries and Asian countries, and also they are one of the major players in America too. A small detail of the company’s business can be given by the following data:

2006: Sales – $ 7.74 Billion

Operating profit- $ 1.6 Billion

The company sold 76 million cases of spirit and 23 million cases of wine in the year 2006.

The company is steadily building its brand and making its presence felt in all the continents which is one of the best strategies. The company is surely on its way to reaching the top spot.

One of the most important aspects of the company is that it has a decentralized organizational structure. The decentralized structure allows the company to import scotch from Scotland and Cognac from Paris along with the popular local brands from the local alcoholic beverage makers and ultimately send them to the customers. This system offers different choices to the customers. This has also provided a general cognitive spirit among the employees and helps to motivate them. Another very important aspect of the company is that they seriously consider the well-being of the subsidiaries and even the subsidiaries can take business decisions in their holding area. This enormously helps the company run their business in areas where local drinks are preferred throughout more than the big international brands.

Basically in a lot of cases, the brand owners only make the marketing strategies and the subsidiaries look into the business of the brands into their sectors and as they realize the pulse of the market they change or up grade their business statistics. Now, in recent times the company has changed to a cross-sectional structure. The main market of the company has been divided into four zones, Asia, America, Europe, and the Pacific. Segmentation has been done due to the production subsidiaries; tat is based on the brand owners like Chivas Brothers, Martell Mum Perrier-Jouet, Ricard SA, and Pernod SA. This was done to simplify the structure of the company and this structure can be easily supported by the decentralized strategy of the company. Along with that the company also giving more attention to its core business, the wine and spirit making business, and it is slowly stepping to the nonalcoholic products too.

The company is operating at a very significant sociological time. Here society is evolving throughout the World at a rapid pace and people as the speed of globalization is getting faster are getting more attracted to luxurious products. Many countries who are generally conceived as poor countries are earning more and more and developing now a day. The business strategies of the company are being made by keeping these aspects in mind. From a country-based organization to one of the leading alcohol companies of the World, to be precise the second-largest company; it is a wonderful journey. The company’s business will be bigger in the future as they are on the correct track for success.

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