Sandlands VineyardsScroll down to see the second and third solutions!Executive SummaryTo fulfill his life-long dream and make the next step in his corporate strategy,Passalacqua should buy the winery and quit his job at Turley. It will provide theopportunity to leverage his competitive advantage of producing wine and allowingfor vertical integration, to reach sustainable profitability and an NPV o
Scroll down to see the second and third solutions!
To fulfill his life-long dream and make the next step in his corporate strategy,
Passalacqua should buy the winery and quit his job at Turley. It will provide the
opportunity to leverage his competitive advantage of producing wine and allowing
for vertical integration, to reach sustainable profitability and an NPV of USD
250.000 in 5 years.
1. While the premium wine segment bears attractive growth, the
focus on factors such as brand positioning and DTC sales is
1.1 While continually increasing demand for wine indicates an attractive market,
growth occurs in the premium segment.
1.2 New technologies enable wineries to sell wine directly to consumers, facilitating
market entry, and providing higher margins.
1.3 In the premium segment, the relevant customers that buy rather expensive wine
lay emphasis on the brand in their purchase decision.
1.4 A Five-Forces analysis indicates a medium competitive level within the premium
wine industry and the importance of standing out in terms of brand and product
offering, be well-connected within the supply chain, and using new technologies in
the sales process.
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05/12/2020 Sandlands Vineyards
2. Sandlands should leverage its competitive advantage relating
to its production of wine, including know-how and business
relationships, to strengthen its market position further and
enhance profit margins.
2.1 A SWOT analysis shows that Sandlands could optimize its business to leverage
unused potential in terms of unserved demand and undervalued prices.
2.2 Sandlands should deal with the challenge of reaching sustainable profits by
focusing on scale and price increase.
3. Based on a financial analysis, corporate strategy, and personal
vision, Passalacqua should buy the winery.
3.1 Considering three different s