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Vincor and the New World of Wine Case Solution

Solution Id Length Case Author Case Publisher
2576 1752 Words (7 Pages) Paul W. Beamish, Nikhil Celly Ivey Publishing : 9B04M001
This solution includes: A Word File A Word File

Vincor Inc. has the goal of expanding its activities all over the world, and one of the prospective targets for the acquisition of the winery Goundrey Wines PTY LTD., which is in Australia, is part of its aim to do so. Vincor now can become one of the top 10 winemakers in the world as a result of their acquisition of Goundrey Wines PTY LTD, which gives them the chance to become a global brand. This opportunity was made possible because Vincor now has the opportunity to become a global brand. Increase your market share in premium regions, broaden your export options, produce income, and improve your return on capital employed in Canada. These are all things you can do to grow your business in Canada. - Canada. This suggests that major brands will be needed to expand their activities into a variety of different sectors (specifically ice wine).

Following questions are answered in this case study solution

  1. Describe the historical development of Vincor. What were the location advantages of Canada regarding the wine industry? What Firm Specific Advantages (FSAs) had Vincor developed in Canada? 

  2. What was Vincor’s strategy in 2002? 

  3. What FSAs did R.H. Philips and the Hogue Cellars have? What FSAs did Vincor acquire from R.H. Philips and the Hogue Cellars? Where these FSAs complementary to Vincor’s FSAs? 

  4. Considering Vincor’s overall strategy and position in the industry. Please mention the advantages and disadvantages of each multinational strategy (global, transnational, home replication and localization) 

  5. What organizational Structure would you recommend for Vincor? Should Vincor’s organizational structure change with each acquisition? Why?

Case Analysis for Vincor and the New World of Wine

1. Describe the historical development of Vincor. What were the location advantages of Canada regarding the wine industry? What Firm-Specific Advantages (FSAs) had Vincor developed in Canada? 

Over almost seven years, Barnes Wines, Brights Wines, Carter Wines, and other Canadian wineries came together to become Vincor (1989 to 1996). In 1989, Donald Triggs purchased John Labatt Ltd.'s Rideout Wines and launched Vincor. Vincor's rise to the top of the Canadian wine industry was a three-step process. Leveraged buyouts (LBOs) took place between 1989 and 1995, and this was the first stage. Building Canada's Wine Company, which lasted from 1990 to 2000, went through a phase of consolidation and reduction. The last step was to become an international wine company from 2000 and forward. By 2000, Vincor had a 21% share of the market after acquiring eight wineries, merging two wine kit businesses, and integrating sales, marketing, production, and accounting. The New World wine market in Canada was worth over $700 million. 

Furthermore, "excellent grape varietals in colder growing circumstances might give nuanced tastes, delicate but lasting scents, tightly concentrated structure, and longer age potential than their counterparts in warmer growing areas of the globe." Canada confirmed this as well. Despite the growing competition from imported wines, sales of high-quality Canadian wines have risen steadily in recent years. As a result of Vincor's wineries in British Columbia, the Okanagan Valley of British Columbia, the Dunnigan Hills of California, the Columbia Valley of Washington state and other parts of the world, the Niagara Peninsula of Ontario, the Ontario provinces of Ontario, Quebec and New Brunswick, as well as the state of California, they were able to sell their wines. Due to Hogue's reputation as a high-end, luxury brand, Vincor's alliance with them may be seen as a huge FSA (approximately 88 percent of its volume in the super-premium category). To avoid portfolio overlap, several appellations were able to distinguish the personality and flavour of their wines unmistakably.

2. What was Vincor’s strategy in 2002? 

In the beginning, Vincor devised a strategy for every wine area that is marketed and made purchases in the year 2002. This strategy was put into action. This was done to bring in as much money as possible. The year 2003 marks the beginning of the yearlong process of putting this approach into action. In Canada, the goal was to raise the total amount of engaged capital, enhance cash flow, develop export capabilities, and grow market share in premium market category products. Vincor's strategy for the United States included a concentration on shifting their portfolio to a higher-end super-premium category, improving their sales skills, innovating new products, and making a shift in how they sell their products to customers in the nation. Vincor also made a shift in how they sell their products to customers in other countries. Vincor has also changed the way that they market their goods to clients in different nations, which has led to increased sales. To offer their items to customers situated inside the country, Vincor has developed some innovative new sales strategies. 

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