Acta Univ. Agric. Silvic. Mendelianae Brun. 2011, 59, 89-98

https://doi.org/10.11118/actaun201159020089
Published online 2014-07-07

Assessment of attractiveness of the wine-production industry in the Czech Republic

Helena Hejmalová, Radka Šperková

Ústav managementu, Mendelova univerzita v Brně, Zemědělská 1, 613 00 Brno, Česká republika

The paper is focused on evaluation of attractiveness of the wine sector in the Czech Republic and on the competitive position assessment of company Věstonické sklepy, s. r. o. using the assessment of key factors and applying the GE matrix. Wine-production can be described as very attractive, favorably developing industry with significant potential for growth and expansion. In particular, the growing popularity of wine consumption, increasing consumption and production, increasing competitiveness, introduction of new technical innovations and introduction of innovative changes in production, storage and sales, are aspects that have a positive impact on the attractiveness of the sector.
The permanent trend of development and market growth represent a well-verifiable criterion that implies there still is a significant share of the untapped potential. Assessment of the competitive position indicates relatively good strategic situation of the company in the attractive environment, but it is necessary to invest considerable financial resources with an uncertain impact on maintaining the position. Main problems of the company namely include the financial situation which is specifically addressed by utilizing short-term liabilities. The company can be described as prosperous in terms of established technologies and implementation of innovative changes, human resource management, use of production and storage capacities, marketing factors, selection of the appropriate type of promotion, and contracting reliable customers.
The strategy based on the position in the GE matrix suggests that the company should focus on production of quality wines and on the offer of specialties to penetrate stronger into the market and with a better competitive advantage. The company should not forget the completion of the proper functioning of the website, which should lead to an increase of the number of potential customers.

References

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