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 1986 1990 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 demand.
Opportunities for growth are open to Cavas Masachs in Spain, other countries of Western Europe, the United States, and Japan. Established competition represents a major threat to the opportunities for growth of Cavas Masachs in Spain, other countries of Western Europe, and the United States. Legal and procedural barriers to market entry threaten Cavas Masachs expansion to the Japanese market.
Within a classification structure of capitalism, market socialism, and planned socialism, the S...