Situational Analysis Of Bottle Mart: Liquor Industry In Australia

Bottle Mart is one of the popular liquor companies of Australia; this organization has been delivering wine, spirit and beer etc throughout the nation for a long period of time. It was established in the year of 1977 and from that time the company has been able to make 700 distributors in different parts of Australia. In the year of 2010, the company was awarded for the best liquor service company (Evens, 2005). After having organizational report, it could be said that Bottle Mart has been following a beneficial CSR policy. The management donates a fix percentage of profit to the Cancer Treatment care. The paper is mainly describing the situational analysis of the respective company. Various techniques and issues have been highlighted in the paper like external analysis and internal analysis.

Situational analysis is one of the essential and important aspects for the business process. Each of the business organization does this thing for measuring the strength and opportunities of the respective business organization. It is the utmost duty of the managers to observe the situation of the business organization so that it can expand its services and opportunities. Situational analysis is comprised of multiple aspects and elements (Fine, 2009). If management of any organization wants to do situational analysis then they must have to focus on the external and internal factors of the business process. The overall paper is mainly focusing on the Bottle Mart Company of Australia. In a small overview, it could be said that Australian market is suitable for this type of beer and wine business. In this case situational analysis has been done for the respective company and through this process overall growth and environment of the business could be observed.

At the time of making situational analysis for any organization, external factors must have to be considered. External analysis is comprised of several elements which need to be focused by managers. Managers of Bottle-mart private limited also need to focus on these issues so that they can get sustainability in the market. Different aspects of external factors have been considered below,

Bottle-Mart private limited belongs to the Liquor industry and it has been observed through analysis that wine market has huge opportunity and scopes in the Australia. Many small and medium organizations have gained benefits from this market. Bottle-Mart is one of the leading giants among them.

It has been observed that liquor industry has been facing challenges since last five years. Rising health consciousness among people declined the overall alcohol consumption. In these inconveniences also, respective industry has a target to expand its profitability margin by delivering quality value. Mainly the industry is focusing on the premium value for the premium customers’ policy (Bottlemart.com.au. 2016).  Liquor board of Australia has assumed that annual profit might be increased 3.3% in forthcoming financial years. Increasing the premium beverage demand of the customer can lead the revenue growth up to 3.1%. According to the management of Liquor board, this industry plays a vital role on the economic value of Australia.

After studying different reports it could be said that liquor industry has huge prospect and value in the Australian market. Due to this reason, Bottle-Mart has been able to sustain in this market with good profit margin.

Through the above mentioned graph revenue generation from different industry could be observed. From the figure it could be said that Catering service provides highest revenue to Australian economy. Second position is hold by Liquor industry. In the financial year of 2012-2013, this industry delivered around the 1.911 value. Through this analysis it could be said that Australian market is suitable for wine companies like Bottle-Mart.

A nation wise comparison also has been made in this paper. From the above mentioned analysis it could be said that Australia is placed where people pay high amount of money in alcohol consumption. Through this evidence it could be said that Australian market is wide and beneficial for wine companies.

There are many other organizations present those have been dealing in liquor industry. Australian liquor market has influenced many investors to invest their money in the Liquor industry. According to the report these competitor organizations have huge strength and scopes in the liquor market. Some of the companies have mentioned below;

• Armadale cellars
• Just wines
• My cellars
• The Vine press

These are the famous and popular wine merchants of Australia. Report stated that these organizations have been able to deliver premium service to the customers. On the basis of this it could be said that Bottlemart need to work hard for getting priority position in the market.

In Australia people love to consume alcohol for their relaxation or any other occasional purpose. Before doing situational analysis mangers must have to analyze the customer for getting the advantages. Customers of Australian wine market are very choosy about their preferences. The above picture is the evidence of that statement. From the picture it could be said that among beer, wine and spirits per capita beer consumption is high. For this reason management of Bottlemart must have to focus on beer selling.

Internal analysis of an organization also needs to be judged at the time of doing any kind of situational analysis. The paper is focusing on the organization Bottlemart. Different aspects of the organization have been mentioned below,

Like other organizations, Bottlemart focuses on its operational activities in an efficient and appropriate manner. The organization has over 700 branches in different parts of Australia. The organization also follows a significant protocol for managing all the activities (Yates, 2008).

• Suppliers: significant suppliers are there for providing raw materials and other elements.
• Inventory: A significant inventory is also maintained where bottles are kept and packaged.
• Distributors: distributors have the duty to pick the product from inventory and send it to appropriate destinations.
• Retail heads: retails heads are there to satisfy customers by delivering service.
• Buyers: Buyers are the normal customers or any other small wine shops.
• Employees and staffs: dedicated and efficient people are hired by the management for handling all the operations.

The organization also operates their business through online mode. People can visit in the website and check their products and services. Terms and conditions are there which must have to be followed by the visitors.

After having the overall analysis it could be said that respective organization is in suitable position in the market. The company has been running their services properly.

The above picture showcases the financial growth of the respective organization Bottle-mart private limited. On the basis of forecasted value it could be said that the organization can reach the peak of success.

Prime products of Bottlemart are wine, spirit and beer. Different types of wines and beers are there in the shops. People love the products and services due to the variety and quality. The organization wants to focus on their current situation for making future plans.

Through the above mentioned graph current situation of the Bottlemart products could be observed. Different products and their shares have been mentioned in the above picture.

To make sense of the future steps that is necessary for the organization bottle mart to succeed in the market and remain prosperous there is need for a SWOT analysis and TOWS analysis to be conducted (Fine, 2009). This will give the organization better insight into the ideas about how to plan for the future steps so that the company can overcome any difficulty in future. The TOWS matrix align the strength of the company with weaknesses and so forth to make the planning easier by pointing out where the strength of the company can be used to overcome the threats to the company.

This analysis outlines the strengths, weaknesses, threats and opportunities of the company so the management can easily get an idea about the current condition of the company and its market positioning (Fine, 2009).

Strengths: the main strength of the company is the reputation of the company and the company since starting in the 70s has grown rapidly and gained renown in all over the Australia. The company is well likes by the customer for their ambience of the bars, the quality of food and service, the hospitality towards the customers and most importantly the taste and quality of the premium brew of different varieties (Bottlemart.com.au, 2016).

Weaknesses: the company has several weaknesses like their dependence on the alcoholic drinks and catering to customers of one category. They are more focused and the theme of their bars is similar which is not always hospitable for young people of age.

Opportunities: there are several opportunities in the market that can be used by the company to ensure growth of the company which has been quite steady since the conception of the company in 1977. The company’s marketing needs to change and their bars need to focus on the local populace and their needs to provide the environment at their shop so the majority of the customers feel at ease.

Threats: the threat comes from the competitors who are locally popular but not part of any large chain. These bars provide the suitable environment for the local populace. The students and office goers definitely would not prefer the same environment as the older people out for a drink and some socializing. Therefore, the local threats are a barrier to the growth of the company (Bottlemart.com.au, 2016).

The TOWS analysis goes beyond the SWOT to provide development options be using the strengths to overcome the weaknesses and take the opportunities presented (Jackson, Reid and Croft, 1982).

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