Data and Modern Corporate System
The modern corporate system is evidence-based, which implies that corporations rely on data to take actions or make decisions that are implemented by using various organizational instruments. As it has become simple to retrieve data and sort it by using different statistical tests; therefore, more organizations are gathering data, to make decisions and predict future market trends, from both its activities and overall-activity in industry.
In the last two decades, Information and Technology have evolved radically, which has facilitated the use of technological devices (internet-connected), for various purposes. Also, such platforms have emerged, such as Facebook and Twitter, which are retrieving sensitive and relevant data. For instance, computing devices, such as mobile phones are used to connect to the internet, and online activity generates data. It must be acknowledged that such generation of data is unintentional, which is why accessing such large amounts of data and statically testing it for any purpose is a controversial and legal issue (Sway, 2017).
IoT and Big Data
As per statistics, internet users are growing at an exponential rate, which is why the size of data generated by online activity (is), is also growing. It has given birth to the concept of the Internet of Things (IoT), which focuses on the sending/receiving of data by using a range of computing devices, such as mobile phones or laptops.
The concept, which is closely associated with IoT is Big Data. Big Data can simply be described as the bulk of gathered data, which is generated by users, individual or organization, through online activity. Big Data fascinates both industries and organizations, as it provides great insight regarding current trends and by applying different statistical tests industries or organizations can accurately project future trends regarding demand of a product or services. Also, it can also aid in improving industrial structure, quality of goods or services and supply mechanisms.
Australian Wine and Global Win Consumption
From the statistics, we know that global wine consumption has remained quite stable over the years. For instance, in the year 2000, 226 million hectoliters of Wine were consumed, whereas as in the year 2016, 242 million hectoliters of wine were consumed (Statistica, 2017). Statistics regarding global population suggest that there has been a slight decline in world population; however, this has not affected wine consumption, and it has remained quite stable. For industry, it is a good omen, as stable consumption, against a slight decline in world population, implies entry of new firms, which will improve industrial structure. However, for organizations, it implies that there will be more competition, which may bring the price down. It may also compel companies to improve quality of their products (wine) as 1) it becomes one means to remain relevant in this global market and 2) it becomes an instrument to generate higher profits (Roser, 2017).
Australian Wine (AGWA), Australian Vintage Limited & Big Data
Wine Industry is one the largest industries in Australia, which has the size of $6 billion. Since 2013, it has grown 2.5%, which suggests that demand for Australian has increased gradually. Statistics also reveal that around 17, 301 people are employed in this industry. In terms of money, it is a huge industry; however, the number of employees in this industry is not that high. We further learn, from the data, that Quality of Australian Wine has improved over the years and as per official figures, by AGWA, it has increased by 1% (AGWA, 2016).
Australian Vintage Company is the leading wine manufactured/seller in Australia. It has invested high financial and human resources to provide quality wine for competitive markets. It is perpetually improving its production mechanisms and quality of products to expand its market. Big Data can assist leading Australian wine-producing companies, such as Australian Vintage Limited, that already have an elaborated infrastructure for production, in realizing that goal. For instance, from the sorting of Big Data, Enolytics (Big data Company) has discovered that in American and European Markets, consumers are interested in varietals, within the specific price range. The taste, style, and price are the dominating factors which contribute directly to the higher sales of the product. However, there are secondary factors too, which include packaging of wine, its label and other such factors (AVL, 2017).
Also with the help of Big Data, it has been enabled to break-down sales of the product to demographics (age and Income brackets). Furthermore, in those demographics, where large brands are not doing so well, small brands are doing exceptional and vice versa. This aids in understanding how price and quality affect sales of wine products, in different demography (Enolytics, 2017).
Implementation of Strategy and Projection
The global consumption, of wine, is quite stable for the last 16 years, despite the change in eating patterns (healthy lifestyle) and a slight decline in world population. It implies that for the next ten years, the consumption will remain quite stable, which will act as an incentive for other companies to enter the industry. The competition will intensify, which forces organizations to invest in innovation and product distinction.
Promoting Australian Wine
For higher profits, in next ten years, leading wine-producing companies, such as Australian Vintage, will have to increase quality for its products in the global market, especially in the United States and Europe, where competition is intense, and consumption is high. It must also be acknowledged by AVL that an overall rating of Australian Wine impacts its sale. This can be done by organizing or taking parts in wine-tasting competitions, which will introduce Australian Wine to new consumers and markets. Markets of Asia Pacific must be targeted, as competition is less intense in those markets. However, the conventional methods remain advertisements and market operations. The effectiveness of these measures will have a direct impact on promotion and sales of the product. In the next ten years growth will be gradual (AGWA, 2016, p.20).
Improving Winery Performance
This is another non-financial strategy, which entirely emphasizes the internal system. The real objective is to produce fit-for-purpose yeast, which reduces wastage and improves quality. This will reduce the cost of producing, and it will enhance quality, which will allow Australian Companies to capture more markets in diverse demography. As per projection, the improvement in internal systems will gradually increase quality and market share, while reducing the price of the product. As suggested by Big Data sorting by various companies (AGWA, 2016, p.37).
References
AGWA, 2016. Australian Grape and Wine Authority Annual Report 2015–16. [Online] Available at: https://www.wineaustralia.com/getmedia/12daa685-69a1-45b7-995e-762b71052b5e/AGWA_Annual-Report2015-16.pdf [Accessed 23 October 2017].
AVL, 2017. Home. [Online] Available at: http://www.australianvintage.com.au/ [Accessed 23 October 2017].
Enolytics, 2017. 3 New Directions for Wine Consumer Data. [Online] Available at: http://www.enolytics.com/enolytics101/ [Accessed 23 October 2017].
Roser, M., 2017. World Population Growth. [Online] Available at: https://ourworldindata.org/world-population-growth/ [Accessed 23 October 2017].
Statistica, 2017. Wine consumption worldwide from 2000 to 2016 (in million hectares). [Online] Available at: https://www.statista.com/statistics/232937/volume-of-global-wine-consumption/ [Accessed 23 October 2017].
Sway, 2017. Big Data and Systems of. [Online] Available at: https://sway.com/k8kD75QGPKAZhY4A?ref=Link [Accessed 23 October 2017].
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