Growth Strategy for Vincor Essay Example for Free

Growth Strategy for Vincor EssayVincor call for to align itself in the groceryplace such that it can continue to be a market place draw and grow internationally. The Canadian wine market is stagnant with limited egress opportunities in a some segments red, premium, varietal, and ice wines. Supply is always a big concern and government regulations for the sale of alcohol must(prenominal) be considered. As a result of the changing environment, unused prospects in the market and strategic growth in external markets (international) should be analyzed.Going forward, Vincors growth strategy needs to focus on markets where they can have substantial market penetration and be highly successful. The opportunities are as follows1) overdraw into international markets via acquisition and restructure the current debt to reduce interest embodys. Capitalize on the popular trade name name in the modern market to achieve significant foreign growth.2) Varied approach to cost reduction and focus on niches within Canada. Recover a portion of the emerging grey market by civiliseing new product packaging for the low-end wines (plastic or boxes).3) Build mutually beneficial partnerships with new glass bottle suppliers and develop a sales channel that provide induce economies of scale for the damage of bottles and extend margins or renegotiate with current suppliers to reduce costs and provide incentives by signing an exclusivity agreement.4) home in in on the ice wine consumers by meeting the demand. Exploit the Inniskillin brand in the Canadian premium wine market in order to gain market share.5) Develop a new product internationally through a partnership with a winery or vineyard by leveraging Vincors strong management group, international award status and proven sales line to sustain Vincors growth pattern.Expanding internationally through the acquisition of a company with strong stigmatization would prove the best alternative, both in terms of timing and future growth potential. Developing a partnership in order to produce new products would take years and considerable time and bowel movement before any gains would be realized. The varied approach would not produce enough growth to reassert an IPO, but many of these avenues will be addressed to reduce costs over the next several(prenominal) years.First six (6) to twelve (12) months Set up the police squad that will conduct an international market study to determine which market, and more specifically, brand to penetrate. The team will include1. Jones and a market taste team (utilize services of a consulting firm that specializes in foreign winery acquisitions)2. Jackson and his mergers and acquisition (MA) team3. Munroe for sales and marketing4. Investment banker The market insight team will gather the data and develop a sound understanding of the targeted wineries and knowledge of the regulations of the country Recommendations will be made to MA teamNext twelve (12) to eightee n (18) months Once a decision is reached, the investment banker and MA team will contact the companies, begin their due diligence process and conduct the final purchase The new winery will be integrated into Vincors portfolio and Munroe with his sales and marketing team will be trusty for its growthThe international acquisition will expand Vincor globally and provide for significant growth in its portfolio. At the same time, the desired Canadian relationships with suppliers will be cemented to reduce cost of sales and increase margins.