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CAVAS MASACHS: A CASE ANALYSIS Introduction Th

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This research analyzes the Cavas Masachs case. Cavas Masachs is a Spanish producer of sparkling wines, and the time of the case is set in 1985. The case is analyzed in the following contexts:

1. A situational analysis is developed that covers both Cavas Masachs and the company's markets

2. A determination is made of which markets should be developed by Cavas Masachs over the 19861990 period.

3. The marketing mix considerations of Cavas Masachs are assessed.

This situational analysis covers both the firm and the Cavas Masachs markets. Based on the situational analysis, the competitive advantage position of the company is assessed, the barrier's to international growth by Cavas Masachs are identified, and the opportunities open to the firm are reviewed.

An important strength of Cavas Masachs is the favorable public acceptance of the company's products. The favorable acceptance of Cavas Masachs products both domestically and internationally, although on a relatively small scale, implies that product quality problems will not impede future market development. Company size and limited financial resources are significant weaknesses at Cavas Masachs in relation to future growth and market development. The company must rely on external entities for major market development outside of Spain, and should market promotion attain dramatic success, there exists the risk that Cavas Masachs production will not be able to satisfy d

. . .
provide Cavas Masachs with an opportunity to develop a competitive advantage through a focus on the sparkling wine segment of the market. While Cavas Macachs cannot expect to become dominant in the sparkling wine segment of the market, the company can expect to establish for itself a viable niche in markets in Spain, some other countries of Western Europe, and the United States. Barriers to International Growth The principal barriers to the development of international growth by Cavas Masachs vary according to market. The maturity of the markets and well established competitive positions act as barriers to international growth for Cavas Masachs throughout most of Western Europe. The major exceptions to this assessment are the markets in the United Kingdom and Denmark. Cavas Masachs should be able to develop viable niches in each of these markets. The principal barrier to the development of growth by Cavas Masachs in the United States lies in price competition. Nevertheless, Cavas Masachs may be able to develop a strong market niche in the United States. The principal barriers to development of entry into the Japanese market by Cavas Masachs are structural in character. Cavas Masachs have neither the financial resources
. . .

Some common words found in the essay are:
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Approximate Word count = 3306
Approximate Pages = 13 (250 words per page)

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