1) Golan Wines is a wine producing company situated in Golan Heights, an ideal location for the production of good quality grapes. China has become one of the major consumers of wine and promises tremendous growth in this industry, largely due to its vast population and increased appreciation for wine. Golan Heights Wines wants to take advantage of this incredible opportunity in the Chinese Market. Hence, I would like to conduct PESTLE analysis of China and SWOT analysis of Golan Heights to understand the various risks associated with entry into the promising Chinese Wine Market.
Political- Being a communist nation, China has a different political system and structure as compared to Israel. Golan Heights will have to adapt to deal with…show more content… Consumer’s growing interest in wine products is very beneficial for vineyards and wineries like Golan Heights. The Chinese consumers are not brand conscious or loyal, which works to the advantage of new wine sellers planning to enter Chinese market. Relationship building is at the core of Chinese culture which shows that Chinese distributors and their connections is vital to the success of any company planning to enter China. Regional health scare has a strong impact on sentiments of consumers regarding food and drink safety and these concerns are vital for companies like Golan Heights to address. China has a money-saving culture, which affects the demand of non-essential goods like…show more content… The company has a great technical strength and the environment to produce high quality wine. It has a strong R&D team and uses the most updated techniques and equipment for wine production, which can add to its comparative advantage. Golan heights exports to various countries that has contributed to its international experience and knowledge to adhere to different international quality.
Weaknesses- One of the weaknesses of Golan Heights is its lack of knowledge about the Chinese culture and market. Since culture is so important in China, this can negatively impact Golan Heights’ sustainability and profitability in Chinese Market.
Opportunities- China’s growing market especially in the wine sector is one of biggest opportunities Golan Heights can tap on. The increasing segment of new world wine drinkers in China provides an opportunity for Golan Heights to establish and develop brand loyalty. The Chinese consumers taste in wine has been evolving and the new world wines seem more approachable, which can be a great advantage to Golan Heights. Chinese wineries continue to look for collaboration with international companies that can provide Golan Heights an opportunity to expand into the Chinese market. The consumer confidence in domestic and Old World Wine has decreased due to counterfeiters