SWOT Analysis for Wine Exporters Targeting Poland

SWOT analysis for wine in Poland This module assists exporters and BSOs in developing countries in becoming familiar with the strengths, weaknesses, opportunities and threats for a wine exporter planning to target the Polish market. It also helps DC exporters to make a SWOT analysis, specific to their company. A SWOT (Strength, Weaknesses, Opportunities and Threats) analysis helps you to audit your company in relation to market developments and competitors on selected markets.

The SWOT shown below visualises external aspects (opportunities and threats) on the Polish market and internal aspects (strengths and weaknesses) of your company, both affecting your market entry. You are only in control of internal elements. You can adapt and improve their intrinsic quality according to market trends, and the resulting opportunities and threats, in your target markets. In Figure 1 you can find a SWOT analysis for a DC exporter of wine to Poland. Note that this analysis is generalised, and should be used only as an example.

The CBI Export Marketing Planner (available at http://www. cbi. eu) offers tools to help you make the SWOT analysis specific to your company and your target market. Firstly, the 5Ms methodology helps you audit your company on the basis of five variables; Men (human resources), Means (resources), Methods (management and process performance), Machines, and Measurables (marketing impact, customer and employee satisfaction, qualitative certifications). Secondly, you can apply the value chain approach to analyse all value-addition activities of your company.

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Identifying external factors is done through a market audit. The character of all these elements is that they are beyond your control. You cannot influence them. The market dictates the rules of the global play you are about to enter. The key question here is: can you deal with the market trends? Do the trends offer you chances or challenges for export success? Together with the competitor analysis, it will determine your decision on final market selection and market entry strategy. CBI modules on your product (group) offer a lot of information on market developments, threats and opportunities.

The third tool offered by the Export Marketing Planner is the STEEP methodology. This is a comprehensive method for identifying opportunities and threats related to Socio-cultural factors, Technological factors (barriers), Economic factors, Environmental factors and Political factors related to trade. Source: CBI Market Information Database • URL: www. cbi. eu • Contact: marketinfo@cbi. eu • www. cbi. eu/disclaimer SWOT analysis for wine in Poland Figure 1 SWOT analysis for wine to the Poland SWOT: DC EXPORTER OF WINE TO POLAND STRENGTHS • • • • • •

Availability of cheap land and raw materials Favourable climate Larger production volume Innovative character of wine compared to Old World wines Competitive price Availability of low-cost human resources Unique grape varieties • • WEAKNESSES Transportation costs Lack of (access to) capital (investment/working) and export insurance Lack of access to market intelligence Lack of export/management experience Lack of Quality Assurance Systems Lack of entrepreneurial capacity Lack of tacit knowledge • • • • • OPPORTUNITIES • • • • A new wine market with expanding possibilities and un-established tastes Expanding market share of table wine The domination of cheap wine can make entry for some DC exporters easier Low import tariffs Emergence of small independent importers dealing with small volumes of wine Increased capacity for bulk imports (for producers of large quantities) Local producer networks; sharing of knowledge • THREATS Dominance of semi-dry and sweet wines can limit distributors focusing on dryer varieties

High volume requirements by importing hypermarkets, which lay a dominant role in Poland DCs face competition from each other Cultural and language differences EU quality assurance and legislative requirements difficult for DC producers (e. g. adding sugar) Trust in Eastern European brands due to tradition Preference for cheap table wine as a threat to market integration of more premium wines • • • • • • • • • This survey was compiled for CBI by ProFound – Advisers In Development in cooperation with Theo Jansen Disclaimer CBI market information tools: http://www. cbi. eu/disclaimer Source: CBI Market Information Database • URL: www. cbi. eu • Contact: marketinfo@cbi. eu • www. cbi. eu/disclaimer

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