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Swot and Pestel analysis - Essay Example

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Case Study Table of Contents Question 1: Do you agree with the owner that there is a fit regarding the company strategy and resources? 3 SWOT Analysis 3 PESTEL Analysis 5 Question 2: What is Fitz- Ritter’s competitive advantage? How did the company manage to survive in a highly competitive wine business?…
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Swot and Pestel analysis
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Swot and Pestel analysis

In this era of globalisation, the wine industry is experiencing a nascent stage of growth in Germany. As a result, it has emerged as one of the promising sectors offering high influence over the GDP of the economy of Germany (Koch & et. al., n.d.). SWOT Analysis Strength: Strong Brand Image Operating for Nine generations Development of FitzSecco passion fruit High quality of white wines Location of Fitz-Ritter Smaller Wine Bottles Champagne Production Sparkling Wines Weakness: Medium Size High price Opportunities: Small Museum Bacchus Boutique Sponsoring Of Charity Events, Concerts Threats: Varied New Vinters Globalisation Source: (Koch & et. al., n.d.). Fitz-Ritter is one of the renowned and leading wine estates of Germany operating efficiently since nine generations. Moreover, it also includes champagne production along with wine in order to extend its portfolio in the market among other competitors. Fitz-Ritter always attempted to offer more concentration over introducing new products namely ‘FitzSecco passion fruit’ for the young citizens in order to enhance customer dependency and loyalty, resulting in augmentation of its total sales. Furthermore, another significant factor, which enhanced its equity, has been regarded as the high quality of white wines being strongly preferred by the customers of German market (Koch & et. al., n.d.). ...
However, Fitz-Ritter also possesses certain weaknesses such as the medium size and high price of its products, which may not be affordable for lower income groups (Koch & et. al., n.d.). The introduction of a small museum along with a gift shop named Bacchus boutique also facilitated Fitz-Ritter to augment its brand image and uniqueness in this era of competitiveness. In addition, sponsoring of varied charity events, concerts on wine estates and art galleries also provided the opportunity of enhancing the awareness of its target customers resulting in amplification of the demand of FitzSecco passion fruit along with its brand. Due to globalisation and industrialisation, wine industry became highly competitive, resulting in attraction of varied new young aged vinters. It declined the productivity as well as the prosperity of Fitz-Ritter leading to reduction of its position and attributes in the market imposing threats to the company (Koch & et. al., n.d.). PESTEL Analysis In order to eliminate the custom duties over export operations of wine products, Johann Firtz also led the protest campaign named Hambacher Fest by young vintners which significantly affected the business operations of Fitz-Ritter. It declined the brand image, revenues and value proposition of Fitz-Ritter in the market of Germany. Consequently, the movement was not preferred by the citizens of Germany and France and so the entire business operations, shifted into the market of United States. Besides, the restricted laws of the government of United States also acted in a negative way resulting in reduction of the total productivity of Fitz-Ritter. Moreover, health consciousness of the citizens also declined the profit margin and fidelity of Fitz-Ritter ... Read More
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