Global and International Business Context Essay

world(prenominal) and International Business Context - Essay ExampleIt was worth $263.8bn in 2009 and is forecast to continue growing, albeit s depletedly (ibid, p.2). Europe is the largest trade for wine, holding 80.5% of the market by care for. The Asia-Pacific region, which includes Australia, is worth 6.9%. The main buyers are supermarkets and hypermarkets, taking 37.9% of the market rule book (ibid, p.14). Entry to the market does not require a large company or study capital investment as high quality wines command premium prices (ibid, p.15) but Datamonitor assess the likelihood of juvenile entrants as being weak with moderate competitive rivalry.The Australian wine market is sensibly fragmented with the top three producers holding just under 50% of the market by volume (Datamonitor 2010b). It was worth $5,768.4mln in 2009 and is forecast to grow at approximately 2% per year, which is faster than the global wine market (ibid, p.2). The main provider of wine is Fosters G roup Limited, holding 20.8% market bundle by volume. Buyer power is more important in Australia as there are low switching costs to alternatives and an unusual concentration of food and beverage suppliers (ibid). For new entrants, there are barriers to incoming import duties, taxes and large distribution costs of imported wines (ibid). Competitive rivalry is considered moderate. Producers can use stigmatisation to strongly differentiate their products, providing a wide range. The primary distributors are specialist retailers, holding a dower of 73.4% by volume in 2009 (ibid, p.23).For foreign producers, the options for entering the market include starting a new company or exporting. If exporting, there are a number of indirect taxes and duties that account for 50% of the value of the imports (ibid, pp.14-15) but if importing a premium brand, market entry can be achieved successfully by adding a large margin to account for the taxes. Datamonitor assess, however, that the likelihoo d of new entrants is