Growth Strategy for Vincor Essay Example for Free

Growth Strategy for Vincor EssayVincor unavoidably to align itself in the marketplace such that it can continue to be a market leader and grow internationally. The Canadian wine market is stagnant with limited growth opportunities in a few segments red, premium, varietal, and methamphetamine hydrochloride wines. Supply is always a big concern and government regulations for the sale of alcohol must be considered. As a result of the changing environment, new-fashioned 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) Expand into international markets via acquisition and structure the current debt to reduce interest costs. Capitalize on the popular brand name in the new market to achieve significant foreign growth.2) vary approach to cost reduction and focus on niches within Canada. Recover a portion of the emerging grey market by developing 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 leave behind puddle economies of scale for the price of bottles and increase margins or renegotiate with current suppliers to reduce costs and provide incentives by signing an exclusivity agreement.4) Zero in on the ice wine consumers by meeting the demand. Exploit the Inniskillin brand in the Canadian premium wine market in regularise to gain market share.5) rise up a new product internationally through a partnership with a winery or vineyard by leveraging Vincors beefed-up management team, international award status and proven sales force to sustain Vincors growth pattern.Expanding internationally through the acquisition of a confederation with strong branding 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 effort before any gains would be realized. The varied approach would not produce lavish growth to support an IPO, but many of these avenues will be addressed to reduce costs over the next several years.First six (6) to xii (12) months Set up the team 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 insight 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. investiture 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 make to MA teamNext twelve (12) to eighteen (18) months Once a decisi on is reached, the investment banker and MA team will contact the companies, begin their due(p) 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 responsible for its growthThe international acquisition will expand Vincor globally and provide for significant growth in its portfolio. At the same time, the craved Canadian relationships with suppliers will be cemented to reduce cost of sales and increase margins.