1. SWOT Analysis of the Australian Wine Industry for the US Wine Market Strengths of Australia compared to the US: • Australian harvesting innovation using drip irrigation, mechanical harvesting and mechanical pruning reduces labor costs. • Fermentation and aging occurs in large quantities using computerized controls and the use of stainless steel tanks • “Wine-in-box” innovation has saved shipping costs and is convenient for refrigerating wines customers • Australia has ensured the vintage-to-vintage consistency required by the brand and created a hierarchy from $9 to $185 • Its fruit-driven wines are easy to please customers • Land prices are cheaper in Australia than in the US • Supply of strong brands with good value for money Weaknesses: • Australia has consolidated its image of cheap wine thanks to its willingness to aggressively lower prices. • Rising water and energy costs have increased production costs. • Oversupply of fruit by 7%. Opportunities: • Australia's move towards mid-segment wines ($5-$8) favored by United States• Consumption of premium wines increased from 150 million in 1985 to 600 million liters by 20...
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