E.J. Gallo Winery
E. & J. Gallo Winery is a privately
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E. & J. Gallo Winery is a privately owned company which produces wines and fortified wines across a broad spectrum of price ranges. The winery is considered the largest domestic producer of wines, although exact figures are difficult to arrive at since it is a privately held organization. The wine industry is a difficult one which has suffered a number of setbacks, including Prohibition and the Depression (although some wines were permitted to be sold for medicinal and religious purposes during Prohibition). Gallo has an image of being a mass-produced winery that markets to the everyday consumer without discriminating taste, and its success with Thunderbird, its lowest priced fortified wine, reinforces that image. The company has successfully introduced new products that have been well accepted by the market, including champagnes and wine coolers, and much of the company's success is due to its close integration with its suppliers and partners in the production and distribution of its products.The problem facing Gallo today is the same problem that other makers of alcoholic products face: a declining demand for their products. The American consumer has become increasingly aware of the health problems associated with alcohol, and has cut back on the consumption of alcoholic beverages, including wine. This has resulted in new products being introduced, such as wine coolers, but the industry as a whole must devise strategies for ove
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re interested in short-term profit or long-term viability; those that are interested in the first would do well to buy the company, while those interested in the long-term outlook might do better elsewhere.
Justifications
1. The American tobacco market is undergoing severe change. There is an increased social stigma associated with smoking that was not present when the company was in its growth phase, and the American cigarette industry is best described as a mature, and possibly declining, market. Philip Morris has strong brand identification and loyalty with its myriad brands, and should use that as much as possible to build its overseas marketing of its products. The cigarette segment remains a "cash cow," although the lower profit margins associated with international sales deflate that image somewhat. Nonetheless, the company can use the revenue generated from its tobacco products to build other parts of its business. If the American tobacco market continues to have increased regulations or taxes applied to its products, Philip Morris will be well-positioned to ride out the trend for as long as possible.
2. The company can no longer operate as though the cigarette market will remain intact forever. To some degree, th
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Some common words found in the essay are:
Philip Morris, Briggs Stratton, Groupe Schneider, Mary Kay, Identification Growth, Lake City, Bartles Jaymes, Theatre London, Prohibition Gallo, Sam Walton, groupe schneider, mary kay, sam walton, briggs stratton, recommendations 1, artistic director, justifications 1, philip morris, operating costs, salt lake city, power equipment, investors considering purchasing, 3 investors considering, reduce operating costs, american tobacco market,
Approximate Word count = 6336
Approximate Pages = 25 (250 words per page)
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