Domaine Chandon Australia Case Study

Organisational Profile

Who are they?

~Domaine Chandon Australia - 'Green Point' was originally the name which was used in all export markets.

What is their main business?

~Produce and market unique premium global sparkling & still wines.

Where is there business?

~Both domestic and export markets.

Why do they wish to venture in the new overseas market?

~One of the company's objectives is to export 50% of its total production.

How do they intend to do business in the new overseas market?

~Green Point will seek to dramatically increase in both the super premium and premium product ranges to entice a larger demand from the Asian (Japan) markets.

Situation Analysis

Overseas Market & Industry Analysis (Porters 5 Forces)

Threat of New Entry

-Expensive to enter the industry

-Experience needed, but training easily available

-Some economies of scale

-Cost benefits if in business for some time

-No technology protection

-Low barriers to entry

Buyer Power

-Many buyers; liquor stores and supermarkets

-Very large orders

-Largely homogenous product

-Moderate price sensitivity

-Ability to substitute

Threat of Substitutes

-High level of cross product substitution

-Ability to import wine or get locally

Degree of Rivalry

-Large amount of competitors

-Moderate customer loyalty

-High costs of leaving the market

Supplier Power

-Good brand positioning (Australia known for good wine)

-Similar products elsewhere

-Able to substitute product lines

-Able to change product lines

Situation Analysis

Organisational