Pernod Ricard has a competitive advantage due to numerous factors, Pernod Ricard is currently ranked as the second largest Wine and Spirit Company, the strategy utilized to get to this position was a very deliberate and strategy of timely mergers, acquisitions and planned alliances which created a Pernod Ricard portfolio consisting of high market shares in global wine and global spirits.
Other advantages for Pernod Ricard includes their public image, well established and familiar brand, and a constant growth of new products line and distribution channels. Pernod Ricard has a domestic and international market which results in a global market. Pernod Ricard also has a well-trained and experience employees which helps to reduce labor costs.
The …show more content…
Key Components of PR’s Strategy
Pernod-Ricard's has several components to their strategy. Pernod Ricard has a very strategic way of financing and investing heavily in specific brands and companies around the world. Pernod Ricard is determined to turn his portfolio into a premium portfolio with the purpose of speeding up growth and profit. Pernod Ricard takes advantage of the opportunities in developing markets that offer sturdy growth outlooks. Pernod Ricard focus is to always actively seek advantageous opportunities to consolidate the Wine & Spirits sectors.
Over several years of quick mergers and acquisitions, Pernod Ricard developed a solid portfolio of premium brands on an international scale. For example, after the creation of Pernod Ricard in 1975, the following year the acquisition of Campbell Distiller and the purchase of Cuisenaire was the start of their success. From that point, Pernod Ricard has consistently and strategically acquired and acquisition companies to increase their portfolio and goal to success. To continue toward the goal of being the global leader, Pernod Ricard has to consistently seek progress in all wine and spirits segments or risk being overtaken by competitors. For example, in 2005 after successfully acquiring Allied Domecq, Pernod Ricard became the world’s number 2 in wines and …show more content…
Government rules, regulations, policies, rigorous advertising regulations and political decisions all can impact Pernod Ricard future and creates a big challenge when it comes to performance and sales. Also, intense competition from other brands and local products and increase production by competitors, tax regulations & increase duties, underage drinking issues, consumer health issues and increase in labor cost. These issues and challenges can lead to decrease growth and drop in sales. Pernod Ricard is not present in the beer market if they choose to participate this move could result in an increase in production and revenue.
Conclusion
My recommendation for Pernod Ricard’s ongoing success is to establish a powerful corporate strategy. Pernod Ricard should concentrate on key brands, develop strong local and regional brands and wholly-owned distribution networks in all major markets, and influence his experience employees through the company’s highly-decentralized organization. I also recommend that Pernod Richard invest in the beer industry. I am very optimistic that if Pernod Ricard follows my recommendations, PR will be the number player in the wine and spirits industry
Other advantages for Pernod Ricard includes their public image, well established and familiar brand, and a constant growth of new products line and distribution channels. Pernod Ricard has a domestic and international market which results in a global market. Pernod Ricard also has a well-trained and experience employees which helps to reduce labor costs.
The …show more content…
Key Components of PR’s Strategy
Pernod-Ricard's has several components to their strategy. Pernod Ricard has a very strategic way of financing and investing heavily in specific brands and companies around the world. Pernod Ricard is determined to turn his portfolio into a premium portfolio with the purpose of speeding up growth and profit. Pernod Ricard takes advantage of the opportunities in developing markets that offer sturdy growth outlooks. Pernod Ricard focus is to always actively seek advantageous opportunities to consolidate the Wine & Spirits sectors.
Over several years of quick mergers and acquisitions, Pernod Ricard developed a solid portfolio of premium brands on an international scale. For example, after the creation of Pernod Ricard in 1975, the following year the acquisition of Campbell Distiller and the purchase of Cuisenaire was the start of their success. From that point, Pernod Ricard has consistently and strategically acquired and acquisition companies to increase their portfolio and goal to success. To continue toward the goal of being the global leader, Pernod Ricard has to consistently seek progress in all wine and spirits segments or risk being overtaken by competitors. For example, in 2005 after successfully acquiring Allied Domecq, Pernod Ricard became the world’s number 2 in wines and …show more content…
Government rules, regulations, policies, rigorous advertising regulations and political decisions all can impact Pernod Ricard future and creates a big challenge when it comes to performance and sales. Also, intense competition from other brands and local products and increase production by competitors, tax regulations & increase duties, underage drinking issues, consumer health issues and increase in labor cost. These issues and challenges can lead to decrease growth and drop in sales. Pernod Ricard is not present in the beer market if they choose to participate this move could result in an increase in production and revenue.
Conclusion
My recommendation for Pernod Ricard’s ongoing success is to establish a powerful corporate strategy. Pernod Ricard should concentrate on key brands, develop strong local and regional brands and wholly-owned distribution networks in all major markets, and influence his experience employees through the company’s highly-decentralized organization. I also recommend that Pernod Richard invest in the beer industry. I am very optimistic that if Pernod Ricard follows my recommendations, PR will be the number player in the wine and spirits industry