Swot: Wine and J. Gallo Winery Essay

Submitted By johnzmw
Words: 403
Pages: 2
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wStrengths 1. Dominant market position
In 2006, the E. & J. Gallo Winery produced more than one-fifth of the total volume of wine in the United States (20.6 percent). The company sold about 70 million oases of wine in domestic and international markets in 2007, resulting in about 3.5 billion in sales revenues. Low cost mass production strategy
They were the low-cost alcoholic beverage favored by people with low incomes and budget-constrained teenagers and college student. 2. Strong brands quantity
Their brand portfolio is among the strongest in the industry with more than 75 brands in its product lineup and was exporting wines to countries all over the world. 3. Strong distribution
E. & J. Gallo Winery owned the wholesalers of distributors of Gallo wines in about 10 geographic markets and probably would have bought many of the more than 300 independent distributors.

Weaknesses 1. Low-end image
Over the years had always been its reputation as a maker of low-end wines. Gallo’s low-end image became an increasing liability in the 1980s as wine consumers began to purchase better-quality table wines in increasing numbers. 2. privately held company
E. & J. Gallo Winery is family-owned, so this company’s scale size is not too big. Such company development is slower than other financing companies. Have no more capital development technological or expansion scale.

Opportunities 1. expansion into emerging markets
In wine industry E. & J. Gallo Winery has enough market shares, so develop other products will increase new profit, it can became company diversified development. For example, drinks. 2. Growing e-Retail
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