Wine Industry Issues Paper

The political aspect of the wine industry is not only included the exiting legislation and regulation that effect all wine producers but it also has other influence from the local government and communities. Especially, in Napa and Sonoma valley where Vo Ltd. operation. The success of the wine tourism in this region become its own enemy. With the growing number of wine tourist to this area, it has created a positive impact to the economy but in the same time it brought unbearable traffic, noisy environment and the dangerous of drunk driving (SVB, 2017). There are suggesting regulations to solve these issues which will increasing the cost doing business to all wineries including Vo Ltd. Therefore, the online marketplace is the company response

Of these, the Baby Boomers and the Generation X is the group that drive the luxury wine segment and the millennials are those that drive the direct sale and the future of the industry (xi, 2017).

Another component of that affect to the wine industry is the technology. Wineries has adopted technologies that help them to manage the customer relationship, improve marketing, and efficiency in maintain production cost.

Natural environment is the most impact factor to the wine industry as it is affect to their source of product. Bad weather, global warming, heavy rain… these are element direct influence to wine maker. Vo Ltd. and other wineries in the State of California are pay more attention to this as they had experienced a most terrible drought in the region history.

has wide range of both tangible and intangible resources, that help the company build its core competency superior to its competitors. First, with the capability to have its product distribute to national wide through its partners, direct sale at its tasting rooms, and the new online store, Vo Ltd. has the company products expose to all sales channels while many of the company competitors still selling through one or two channels. Second, the company also has reputation with adopting new technology, implementing, and integrating in company operations. That gives Vo Ltd. essential knowledge and skills which become a strong resource for the company to use in improving its business process and keep efficiency in production. In addition, the company has an advance wine making techniques and grape planting methods, that make Vo Ltd. wine like no others in region as its wine cost less but offer higher quality. Furthermore, the company is family own and operate with most employees are relative or friends and they are treat each other as family, that is a rate capability and an intangible resource which Vo Ltd competitors unable to