In addition another threat that the business is facing is The Health Alcohol Alliance group which demands an increase in taxes on alcohol due to the fact that children aged below 16 end up in hospital due to alcohol misuse.
However, through extending its wine offering, Diageo will intensify the competition between itself and companies such as Pernod Ricard or Allied Domecq, as well as more wine-centred companies including Kendall-Jackson or Constellation Brands.
We employ 30, talented people across our global business. Whilst in Ireland, which has come late to wine-drinking, the potential of an immature market is apparent.
Diageo can expand their range of products and services even more to attract wider range of customers e. India, Russia and China are all significant immature markets, expected to enjoy dynamic wine growth in the period, as all three countries see an increasingly westernised lifestyle.
Furthermore it would be recommended that the business expand the number of products and makes them more affordable for lower income customers to meet their demands. Where Diageo has differed from its rivals in recent years, however, is the way in which its wine business has been somewhat overlooked in comparison to the development of its global priority brands, which have mainly been centred on spirits, as well as its flavoured alcoholic beverages.
Red wine sales are likely to continue to benefit from medical and scientific research findings indicating that it offers health benefits to regular, moderate drinkers. A graph below shows cost to health of alcohol on males and females in the UK.
All the information was gathered using secondary data on the internet from varieties of different websites and online articles because internet research provides huge range of information, however some of it was out of date or irrelevant therefore it had to be chosen carefully to produce high-quality SWOT analysis.
There is considerable growth potential in Norway and Ireland.
Sustainability and responsibility Our sustainability and responsibility goals are fundamental to our strategy and cover the following three areas. Diageo PLC is the leader of an alcoholic drinks in the world operating in countries providing customers with wide range of premium drinks such as vodka, whisky, wine and beer.
A broad wine portfolio means that the company is reasonably insulated from undesirable fluctuations in consumer confidence, through its affordable labels, but can also offer the aspirational consumer, higher-priced reserve wines.
Furthermore the main problem that the company is facing is that they have been constantly targeted as the main contributors for health and social problems which lead to alcohol abuse. Bacardi and Pernod Ricard that also have a vast amount of market shares and can influence the market with their products to take away customers from Diageo PLC.
All of these markets offer potential for its wine business as well as spirits, and the company should be able to gain economies of scale were it to share distribution channels with its extended spirits business.
Each of our markets is accountable for its own performance and for driving growth.
Increased competition from non-wine drinks: To support this, we participate in mainstream spirits so consumers can access our brands at affordable price points.
As Diageo is currently well represented in Europe, it is in a strong position to further exploit these markets.
Its operations include producing, distilling, bre wing, bottling and pac kaging, distr ibuting, de veloping and mar keting Diageo plc SWOT Analysis. Baileys, ranked, by volume, the number one liqueur in the world, sold million.
Diageo has already begun to do this by encouraging our vodka brands to develop products that appeal to our younger customers. If you look at appendix IV, the vodka industry is one of the most attractive industries that we are in. Diageo is unlikely to be approached with regard to its wine business alone, because of its lack of a major global brand, which is an essential element of any major wine company.
SWOT analysis of Diageo company which has been operating in beverage industry since It’s the world largest producer of Spirit, beer and wine. Strengths • A highly recognized brand which has a market presence in countries.
• Strong sales and distribution network. SWOT analysis of Diageo company which has been operating in beverage industry since It's the world largest producer of Spirit, beer and wine.
Strengths • A highly recognized brand which has a market presence in countries. • Strong sales and distribution network • Diageo provides a positive working environment.Swot of diageo