Food in an integral part of understanding different countries, cultures, and lifestyles. In fact, your company is interested in importing Australian wine to the United States. However, you must first identify which Australian suppliers can provide specific types of wine for your burgeoning dinner cruise business. After searching the supplier directory, use specific criteria to compare the profiles of companies supplying both red and white. Decide which supplier is best for your company. Why did you choose this company? Be sure to justify your conclusion.
International Business Strategy Implications
International business strategy refers to plans that guide commercial transactions between parties in different countries or continents. It is a model for global expansion and revenue increment that aims to test the receptiveness of foreign markets and their penetrability (Doh, 2005). It is based on home market resources and aims to discover the acceptance levels of the home company’s products abroad. More often than not, this type of strategy is common among private companies and corporations as opposed to government institutions and parastatal organizations. An international business strategy must be drawn up whenever a company needs a method of entry into a foreign market (Olson, Slater & Hult, 2005). An obvious advantage of doing this is that it allows for business growth and expansion, but on the downside, it elicits political questions such as accusations of exploitation of foreign country’s economic potential (Jackson & Deeg, 2008; Ghemawat, 2003). Despite the risks and negative effects involved, an international business strategy is an essential tool that spurs on business growth, capital expansion, and penetration into new and never-before tested markets.
Food is an integral part of understanding different cultures, countries and lifestyles. It is with this in mind that I went ahead to start and successfully manage a dinner cruise business that not only offers customers the best cuisines but also gives them an opportunity to sample different cultures across the world. In order to expand and further diversify the business, my company aims at importing both red and white wine to the Unites States of America from Australia. The company seeks to find and contract a supplier that is able to consistently source, vet, and package and ship high quality red and white wine to America. The supplier is also expected to issue monthly reports to the managing board of the company as well as to give updates on shipments as often as they are made. The chosen supplier must be able to supply very large orders as the company is quickly growing and henceforth, demand for wine will be increasing at a rapid rate. The six companies that I have shortlisted for the supplier selection process include Amphora Wines, Best Cellars, Bordeaux Shippers, Casa de Vinos Australia, East End Cellars, and Shortys Liquor.
Identification of Suppliers
Amphora Wines is a family business established in 2001 and has since grown to become a five star premium Australian wine producer and one of the country’s leading purveyor of finished wine for private labels. The company is based in Adelaide, Australia and it offers domestic wholesale and retail as well as international export packages. Amphora does not have its own vineyards but sources from reliable growers, wineries, suppliers and clients to be able to offer red, white, sparkling, mixed and rose wines. Best Cellars is a five star corporate wine specialist company established in 1987. It is a wholly owns subsidiary of David Matters Best Cellars Ltd. based in Sydney, Australia which offers personalized service-oriented dealings with corporate and private clientele. The company deals in local sales as well as international exports and offers red, white, sweet, mixed and sparkling wine. Bordeaux Shippers is another Australian company in the wine business. Established in France by a wine-loving family, the business relocated to Australia after ten years of operation. Bordeaux grows their own wine and in over 10,000 vineyards, a move which ensures quality and consistency of their products. Wine is stored in optimum cellar conditions and the company provides expertise, experience, wine tasting, collectables as well as wine sourcing to its clients. It produces red, white, sparkling, mixed and rose wines. Although it delivers the products to the local market, Bordeaux actualized specialized in export and shipping as they name implies.
Casa de Vinos Australia is a leading luxury liquor store in Australia that imports, distributes and resells wine on retail and wholesale. In addition to red, white, sparkling, mixed and rose wines, they also provide malt, whisky, gin, rum, tequila, glassware and French knives. On the other hand, East End Cellars, established in 1998, is owned by Micheal Andrewartha, a wine fanatic with over 20 years’ experience in the wine business. The company produces and distributes both locally in Australia and internationally through shipping lines and air transport. East End produces red, white, sparkling, mixed and rose wines. Finally, Shortys Liquor is an Australian wine business started in 2004 by David ‘Shorty’ Short. It has over 60 years’ experience in the industry and focuses on corporate supply of beers, wines, and cedars. Specifically, they deal in red, white, sparkling, mixed and rose wines. The company delivers international orders through courier partners.
Comparison of the Companies’ Profiles
The specific criteria to be used in comparing wine suppliers encompasses the quantity of production the supplier is capable of delivering international orders, a high number of past or current clients, ability to grow, harvest, package and distribute their own as well as other brands of wines, wide clientele base and well-known recommendations, fair prices, shipping or courier partners, and license to work and carry out operations abroad. Firstly, in as much as it focuses on corporate beverage supply, Shortys Liquor is a Liquor store and therefore supplies a varied number of products in addition to wine. Moreover, it only has twelve years of experience and focuses on corporate beverage supply only. Besides, the company does not grow, harvest, package their wine and is only involved in distribution. This raises questions on quality assurance and the ability to consistently execute large orders if reliance is on varied sources of it wine. Its focus on corporate clients also means that it not only has a limited niche market, but also portends potential challenges dealing with a company of a smaller scale such as a dinner cruise.
On the other hand, East End Cellars is a retail-wholesale wine club that has its focus on local and international distribution. In as much as it will be able to meet the steady growing demand and has been in operation for sixteen years, it falls short of the selection criteria as it neither grows its own produce nor packages; rather, it only distributes wines sourced from other merchants. Moving on, Casa de Vinos is a leading Australian-based luxury liquor store which imports distributes and resells wine on both retail and wholesale levels. However, it does not have its own vineyards, production line and it is a liquor store with many other products on offer apart from wine. Therefore, it does not have specialization in wine as a product.
Best Cellars are corporate wine specialists who offer personalized service-oriented dealings with corporate and private clientele. They do not have their own vineyard and may not be able to consistently execute large orders as demanded. The other potential supplier is Amphora Wines, a leading five-star premium wine producer that offers domestic, wholesale and retail models. However, they neither package nor grow their own produce; therefore may not be able to cater for large orders targeting the import market. Additionally, the company’s focus on corporate dealings may pose a challenge when it comes to our business model. Lastly, Bordeaux Shippers is an established wine supplier with a shipping section that it uses to deliver on international orders through wine distribution and importation as required. With over 10,000 domain vineyards, Bordeaux Shippers sets itself apart owing to its ability to grow, harvest and package its produce in order to offer a large selection of wines sourced from its own wineries.
Selection of Supplier
Based on the above analysis, the company that I have selected to play the role of an importing supplier is Bordeaux Shippers. The company meets all the selection criteria outlined in the previous section. It is able to deliver on international orders through its shipping section, engages in the distribution and importation of wines, grows its own vineyards, and maintains the capacity to grow, harvest and package its own product offerings in addition to providing a large selection of wines from its wineries. Besides, Bordeaux Shippers boasts of a wide clientele as evidenced by satisfactory recommendations and advanced by the fair prices on offer to its customers. Lastly, they possess a wealth of knowledge amassed from the years of experience both in France and its current base in Australia. This clearly demonstrates the supplier’s ability to consistently source wines from international markets in order meet and surpass local demand.
It is worthwhile to emphasize that international business Strategy is a plan that offers a model for expansion and revenue increment while testing the penetrability of foreign markets. How well the business strategy is implemented determines the firm’s performance. Moreover, the effectiveness of marketing activities varies from one organization to the other. The best strategies are those that promote business and brand visibility, increase revenue, offer opportunities for stakeholder interactions and networking in addition to presenting multiple opportunities for expansion into new markets.
It is in light of these considerations that I have selected Bordeaux Shippers as the ideal supplier of wines from the international market. This supplier’s business model provides strong indicators regarding its ability to help our company to succeed in the wine import business. It has ventured into diverse market and has a wide customer base and knowledge that we need as we strive to ensure that all our dinner cruise patrons always experience superior wine quality.
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Ghemawat, P. (2003). Semi globalization and international business strategy. Journal of International Business Studies, 34(2), 138-152.
Jackson, G., & Deeg, R. (2008). Comparing capitalisms: Understanding institutional diversity and its implications for international business. Journal of International Business Studies, 39(4), 540-561.
Olson, E. M., Slater, S. F., & Hult, G. T. M. (2005). The performance implications of fit among business strategy, marketing organization structure, and strategic behavior. Journal of marketing, 69(3), 49-65.