Pestle Analysis: Brazil Wine Industry Essays

Words: 2157
Pages: 9




The purpose of this report is to provide Penfolds Winery all the information needed by the company to expand its business interests into Brazilian wine market. The data will be gathered through extensive research of the Brazilian wine market and an internal analysis of Penfolds winery to discover the what the company has and what it needs to have in order for the Brazilian enterprise to be successful. The recommendation will be based on a SWOT analysis of the company and a PESTL analysis of Brazil, which will provide enough information for the company to begin its expansion into the Brazilian market. The end result is the establishment of a Penfolds vineyard in
…show more content…
Economic trends/forecasts Over the last three years, Brazil has imported approximately 6.5 million cases (12 bottles of 750ml each) of wines per annum, which represents US$196 million FOB of annual imports on average. The five largest exporters of wine to Brazil are:

* Chile * Argentina * Italy * France * Portugal

These represent 93 per cent of total imports, while Australia represents one per cent of total wine imports.

5. Socio – cultural Environment

1. Hofstede’s Cultural Dimensions

Uncertainty avoidance ranks highest which indicates a high concern for rules, regulations, controls and issues with career security – typically, a society that does not readily accept change. A large power distance indicates that inequalities of power and wealth have been allowed to grow with Brazilian society. High long-term orientation ranking signifies Brazil has respect for tradition and supports a strong work ethic where long term rewards are expected as a result of today’s work.

5.11 Colectivism Vs Individualism

Generally, all Latin countries including Brazil are considered to be collective societies; however, Brazil has a slightly higher individualism (IDV) rank of 38 compared to the