Get Instant Help From 5000+ Experts For
question

Writing: Get your essay and assignment written from scratch by PhD expert

Rewriting: Paraphrase or rewrite your friend's essay with similar meaning at reduced cost

Editing:Proofread your work by experts and improve grade at Lowest cost

And Improve Your Grades
myassignmenthelp.com
loader
Phone no. Missing!

Enter phone no. to receive critical updates and urgent messages !

Attach file

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Guaranteed Higher Grade!
Free Quote

Struggling With Kweichow Moutai Case study?

Get Kweichow Moutai Case study Solution By Experts

  • points 2313446

    Orders delivered

  • points 5287

    Quality experts

  • points 4.9/5

    Reviews

  • points

    Free samples

Guaranteed Higher Grade Or Get Your Money Back!
Get Help Instantly
question

Writing: Get your essay and assignment written from scratch by PhD expert

Rewriting: Paraphrase or rewrite your friend's essay with similar meaning at reduced cost

Editing: Proofread your work by experts and improve grade at Lowest cost

loader
Phone no. Missing!

Enter phone no. to receive critical updates and urgent messages !

Add File

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Related Services Offered By Myassignmenthelp.Com

Get More Related Service for Your Academic Help

Introduction Of Kweichow Moutai Case study

Kweichow Moutai is a Chinese company that operates in the alcohol industry. The company is partially publicly traded and partially privately traded. It was founded in 1990. In this paper, situational analysis of the company is conducted. Further, it examines the industry structure along with its economic features. It also involves business level strategies and corporate level strategies (Chen and Yu 2022). Another important aspect of the company is its internal analysis, which can be done with the assistance of SWOT analysis. It further conducts competitive analysis and finds out the advantage in the alcohol industry for Kweichow Moutai. This paper focuses on PESTLE analysis for Kweichow Moutai, which enables us to understand the external environment of the country. Target market analysis is equally important for Kweichow Moutai. This paper includes the marketing mix of Kweichow Moutai in order to understand the role of marketing in the success of the company. Financial analysis of the company is also undertaken in this paper to understand the position of Kweichow Moutai. It finds out the key success factors of Kweichow Moutai. In addition, issues and problems faced by the company are also analysed in this paper to understand factors that create hindrances in the success of the company.  

Introduction Of Kweichow Moutai Case study

Vision and Mission Statement of Kweichow Moutai

Vision of the Kweichow Moutai is a strategic plan for the future. Thus, it indicates the position of the company in the future. It involves the necessary steps to secure the future of the company from potential threats that can be taken into consideration under the vision statement of the company. Another important part of Kweichow Moutai Is its mission statement. The mission statement of the company remains to serve the alcohol industry and the country on the basis of the Moutai group and embrace the world. Therefore, the company believes in serving the alcohol industry efficiently along with embracing the whole world.  

Vision and Mission Statement of Kweichow Moutai

Kweichow Moutai Inc. Situation Analysis

Situation analysis is an important part of strategic management. Under the situation analysis, the company gathers information on the external and internal environments in order to examine present strengths, weaknesses, opportunities and threats, which in turn helps to guide its objectives and goals (Fang 2020). The situation analysis of Kweichow Moutai can be completed with the help of SWOT analysis. The company intends to build strengths by reducing weaknesses under the situation analysis. 

Industry Structure and economic feature

Kweichow Moutai operates in the alcohol industry of China. The market structure of the alcohol industry of China is oligopoly as it is dominated by few sellers. Moreover, Kweichow Moutai along with its competitors set the price of alcohol in the market. Thus, they are price setters, which is a vital feature of oligopoly (Yang et al. 2020). High set up costs create entry barriers in the alcohol industry of China. Economic features of China are vital for the growth and development of Kweichow Moutai in the alcohol industry of the country. In this regard, it is necessary to remember that China is an emerging economy with abundance of demand, which contributes largely to the growth of the company. In addition, there was an economic downturn in China in 2020 due to the advent of the global pandemic COVID-19. As a result, it affected the performance of the company significantly.

Kweichow Moutai Strategic

Business Level Strategies ii) Corporate Level Strategies

There are differences between business level strategy and corporate level strategy of a company. Business level strategy of Kweichow Moutai emphasizes on the competition in the marketplace (Yang et al. 2019). The presence of competitors affects the performance of the company as they can influence the decision related to price and output. On the other hand, the corporate level strategy of the company emphasizes on the business profits and growth. It formulates strategies to earn profits and grow the business.

Competitive Analysis and Advantage in the industry

Competitive analysis is essential to understand the position of the competitors in the alcohol industry of China. Knowledge related to sales, product and marketing of competitors are necessary for the competitive analysis of Kweichow Moutai (Li 2018). One of the advantages of the company in the alcohol industry of China is its research and development activities in order to bring innovation in its product line. It helps Kweichow Moutai to beat the competition. Hence, research and development acts as a competitive advantage for Kweichow Moutai in the alcohol industry of China. Competitive advantage helps the company to become the most valuable non-technology company of China.     

SWOT Analysis

SWOT analysis of Kweichow Moutai helps to understand its internal environment. These factors affect the performance of the company significantly.

Strengths

Strength of Kweichow Moutai remains its research and development activities that enables the company to scale up its product along with launching new products in the market of alcohol in China.

Weaknesses

One of the major weaknesses of the company is its competitors, which creates a pressure on the company (Cao et al. 2020). Competitive pressure can influence the performance of Kweichow Moutai in the alcohol industry of China, which needs to be corrected for the sustainable growth of the company.

Opportunities

Kweichow Moutai expanded its business internationally. The domestic market of the company is an emerging one. As a result, emerging economies enable the company to increase its sales in the domestic and international markets.

Threats

One of the major threats of Kweichow Moutai remains regulatory concerns. Government legislation creates problems for the company, which leads to difficulty (Zheng 2021). As a result, it affects the performance of the company. The fight against waste by the government encouraged people to save more and buy less. It lowered the sales of Kweichow Moutai in China.

PESTLE Analysis

PESTLE analysis intends to assess the external environment of Kweichow Moutai on the basis of political, economic, social, technological, legal and environmental factors.

Political

Political stability of China offers significant benefits for the company. In addition, the recent trade war with the United States affected the performance of the company.

Social

Social factors such as a large population helps the company to ramp up its sales. The buyer base of the company strengthened its position in the alcohol industry of China. China is an emerging economy with strong economic growth (Guo 2021). High economic growth rate acts in favour of the Kweichow Moutai as it helps to boost the sales. Thus, it scales up the revenue of the company as well.

Technological

The company developed anti-counterfeiting technology that enabled them to detect fraudulent activities and take preventive measures. Therefore, it boosts the performance of the company exponentially.

Legal

Legal factors play a vital role influencing the performance of the company. Government regulations influence the business of Kweichow Moutai.

Environmental

Another vital factor that influences the business of Kweichow Moutai is the environment. The government of China directed to lower the waste and encourage people to buy less alcohol to manage waste (Reddy and Joshi 2021). This action of the government to protect the environment influenced the business of Kweichow Moutai. 

Target Market Analysis of Kweichow Moutai

Target market analysis is important for Kweichow Moutai which can be done with the help of demographic characteristics, psychological characteristics and behaviour of the target market.

Demographic Characteristics of Market

The factors under demographic characteristics can affect the sales of Kweichow Moutai. China has a large base of middle-class population, which makes it essential for Kweichow Moutai to create products as per their convenience (Li 2022).

Psychological Characteristics of the Market

Psychological characteristics help to understand the nature of customers in reaction to their states and preferences.

Behaviours of the Target Market

One of the most effective ways to conduct target market analysis is to understand the behaviour of the target market. The emerging economy of China increases the demand for products of Kweichow Moutai by understanding behaviour of customers.

Strategies Appealing to Market

The introduction of Maotai spirit in the market of United States has helped the management of the company to increase its customer base (Zhang 2021).

Marketing Mix of Kweichow Moutai

Product Strategy (Product Mix)

The importance of the marketing mix for Kweichow Moutai cannot be denied. It involves four 4Ps such as product, price, promotion and place.

Pricing Strategy

The company takes a competitive pricing strategy to grab the attention of customers. It helps the company to promote its brand online and offline.

Promotional/ Advertising Plan

marketing strategy factors such as market segmentation, targeting, differentiation and positioning in alcohol industry combinedly contribute to the success of the company (Qian 2021). In addition to this, it promotes the products with the help of advertising tools to reach customers efficiently such as social media advertising.

Kweichow Moutai Competitive Analysis

4Ps’ comparisons with competitors ii) Product iii) Price iv) Place v) Promotion vi) Strengths’ comparisons with competitors vii) Weaknesses’ comparison with competitors viii) Organization’s Competitive Advantage

It produces products as per customers' tastes and preferences. Further, it offers a competitive price to grab the attention of customers (Jin 2020). In addition to this, it promotes the products with the help of advertising tools to reach customers efficiently. Place indicates the market where the company can sell its products to target customers. Research and development acts as a competitive advantage for Kweichow Moutai in the alcohol industry of China. It also acts as strengths over its competitors. Pricing strategy of competitors acts as weakness over competitors.

Key success factors

One of the key success factors of the Kweichow Moutai is its robust research and development activities. It enables the company to excel in the alcohol industry of China. It helps to build an innovative and advanced product line that not only attracts new customers but also helps to retain existing customers (Huang and Fang 2019). In addition to this, the company developed anti-counterfeiting technology along with its product line. The incorporation of such technology boosts the growth of the business and keeps the business safe from threats of fraudulent activities. As a result, it supports the company to keep the business sustainable amid high competition.

Problems and Issues in Kweichow Moutai’s Organization

One of the major issues faced by Kweichow Moutai in recent years is the revelation of corruption (Shilei 2019). The shocking revelation of bribery and corruption issues affected the performance of the company in the Chinese market as customers lost their confidence in the company. In addition to this, the government of China introduced a campaign to encourage the consumers to fight against waste by saving more in recent years. Thus, it dropped the sales of Kweichow Moutai as consumers tend to save more and waste less. Therefore, the influence of the government on the business of Kweichow Moutai cannot be denied. Regulatory concerns affected the sales and manufacturing of Kweichow Moutai several times.

Financial Analysis

Kweichow Moutai shows a robust financial performance over the years, which makes it the largest brand in the alcohol industry of China. It earns huge profits from the domestic and international market. As of September 2022, the total sales of the company stood at 87,160.23 million CNY, which was 74,642.2 million CNY in September 2021 (Tao and Zeng 2022). Thus, there was a significant increase in sales of Kweichow Moutai from 2021 to 2022. Net income Kweichow Moutai was 44,399.82 million CNY in September 2022, which was 37,266.17 million CNY in September 2021. Basic earnings per share from continuing operation in Kweichow Moutai was CY 35.34 in September 2022. It stood at CNY 29.67 in September 2021 for Kweichow Moutai. 

Conclusion

Vision of the Kweichow Moutai is a strategic plan for the future. Kweichow Moutai is a Chinese company that operates in the alcohol industry. The mission statement of the company remains to serve the alcohol industry and the country on the basis of the Moutai group and embrace the world. In addition, the market structure of the alcohol industry of China is oligopoly as it is dominated by few sellers. Competitive analysis is essential to understand the position of the competitors in the alcohol. Strength of Kweichow Moutai remains its research and development activities that enables the company to scale up its product along with launching new products in the market of alcohol in China. High economic growth rate acts in favour of the Kweichow Moutai as it helps to boost the sales. Target market analysis is important for Kweichow Moutai which can be done with the help of demographic characteristics, psychological characteristics and behaviour of the target market.  In addition to this, the company developed anti-counterfeiting technology along with its product line. Kweichow Moutai shows a robust financial performance over the years, which makes it the largest brand in the alcohol industry of China. As a result, it supports the company to keep the business sustainable amid high competition.

support
Whatsapp
callback
sales
sales chat
Whatsapp
callback
sales chat
close