Since UAE isposinggreat potential and serves as amulti-channel market which imports and also exports wine, our main focus are the chief UAE markets. The major competitors are Mexican wines namely Margaux and other from internal Europe Chateau.They have been serving the UAE markets for more than 5 years and have a strong distributor relationship with UAE. However, the competitive landscape of Palette wine has been analyzed under the Porter 5 forces.
The bargaining power of the buyer is from low to moderate. It is due to the availability of other wine products in the market. In addition, the switching cost is also low which makes it easy for the customer to switch to other brands.
The bargaining power of the supplier is high in the market. It is due to the high dependence on the suppliers/Distributors to enter the UAE markets. Also, the spread and control of suppliers arebeingin the UAE market, making the exporters depend highly on the distributors for the sales of wine in the local markets.
|No. of suppliers||Limited|
|Level of Switching Cost||High|
The threat of new entrant is high on the market. It is due to the low market barriers and high market potential. In addition, since UAE is a big market that imports and export as well, the distributors or local market trends are always welcoming to the new entrants to increase the sales margins and to reduce the dependence on limited businesses exporting wine in UAE. In addition, the setup cost of the business is not high, since the relationship is based on thedistribution channel.
|Low set up cost||Yes|
|High market potential||Yes|
|Low Entry Barriers||Yes|
|Economies of scale||Yes-to some Extent|
The extent of rivalry is greatin the market; it is due to the structure of UAE market that attracts and invites the different players from different countries to export to UAE and move the FDI to UAE. This trend has made UAE market competitive and has given rise to high rivalry in the market.
The threat of substitution is high in the market. Since UAE and Lebanon are Muslim countries, the availability of juice and non-alcoholic products are the people’s preference. In addition,beers and other substitute products like soft drinks and energy drinks are present in the market, offering high substitution to the customers.
|Beers and other alcoholic drinks||High|
In order to differentiate the products and the wine types from the different producers especially from Margaux and Chateau, all the variants and sizesare kept same.Since Palette will have acompetitive advantage on the basis of design, we will sell the product in different sizes particularly small to serve on the go behavior of the customer and to expand the market. All these competitors of wine are serving in traditional packaging, with abottle and acork. However, the difference will be in terms of packaging. Palette will offer red wine in the 20ml buddy pack bottle, along with tins and large bottles. The two prior packing will serve the youth above 21-29 years, male and female both…………………….
This is just a sample partial work. Please place the order on the website to get your own originally done case solution.