2018 0511192922 bus189 nakedwine PDF

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Nakedwine: SWOT Analysis OUTLINE: Intro 介绍公司: Tianqin Xu （ “Focused cost leadership”） 介绍 SWOT （多一点 research, 加数据啊图标啊 分析一波 具体一点） Strengths:Tao Yang

Most impressively, the company is able to keep the wines affordable. The highest-ranked wine on the site, for example, has more than 15,000 reviews; 94 percent of the people who bought it would buy it again. To Angels, the price tag is $17. The vast majority of wines cost between $9 and $30. https://techcrunch.com/2016/08/13/the-story-of-naked-wines/ Weaknesses：Hailin Liang Opportunities：Nick Threats： Conclusion 展望一下公司前景？

PS. Read the case “NakedWines.com – Disrupting the Wine Industry?”

instruction for group project https://sjsu.instructure.com/courses/1256979/assignments/4592812

● Stakeholder Analysis hailin

● PESTEL Analysis tao yang ● Five Forces Analysis (yunchen zhu) ● Organizational Capabilities ● Competitive Advantages (xu) ● Financial Analysis

hailin

● SWOT Analysis

● Description and evaluation of company’s strategy ● Prioritization of company’s future challenges ● Recommended actions to address future challenges ● Conculsion

Intro：

Stakeholder Analysis The Nakedwine.com business model works on the principle of networking, which gives its customers room to interact and review the beverage on their online platform. The firm was

named the online business of the year 2011; as a result, it won the online Retailer award. The US wine industry is one of the most attractive markets with bargaining power, rivalry, as well as the low threat of new entrants. In this market, the Nakedwine.com is competing favorably with other firms. Thus, the business has been thriving since its launch. Its most significant competitor in the wine market is the Laithwaitesn, which specializes in home delivery and has a broad customer base. The wine enterprise has a steady market with a wide range of customers in the UK and other parts of the world. This paper provides the stakeholder analysis and the financial analysis of the Nakedwine.com business and a conclusion of the investigation. Stakeholders refer to any party, individual, or group, which has a direct interest in the actions and outcomes of the Nakedwine.com like the investor’s suppliers and the stock valuation. The primary customer targets are the wine lovers across the world that make up the most substantial number of stakeholders of the Nakedwine.com Company all the times (Postman 133). Their customers comprise of the angel investors, new users, and the existing consumers of the beverage. Further, the Nakedwine.com business has private investors. They are the largest group in the stakeholder’s family, and they finance the firm’s monthly charges to ensure the organization succeeds. Most the consumer groups are part of the angel investors. Additionally, the suppliers of grapes and other raw materials necessary for the production of the wines are also part of stakeholders. They help to ensure a continuous production process by delivering the raw materials on time. Consequently, the Nakedwine.com manufactures quality wine successfully. The firm has several retailers who buy wine and distribute them to several consumers across the globe. These businesses play a significant role in the operations and transactions in the Nakedwine.com company. Further, the media and the public are a shareholder of the wine firm (Clapperton). They help to market and sell the beverage online. In addition to sales, they give an excellent online image of Naked Wines, which helps to attract more customers globally. The owners and founders of the Naked Wines organization also have a high share in the business dealings of the firm. There are stakeholders in the company, and they help to ensure that the firm stays in the industry by providing finance and advice to the management. Other stakeholders include the government and its employees. The government provides the taxation bracket legalities, legislation, as well as the control of the externalities. This role provides an excellent environment, which makes the Naked Wines business to thrive.

PESTEL Analysis Nakedwines.com is a online community that allows people invest and order wines in their website. A lot of elements, like political, economic, social, technological, environmental and

legal factors, decide the impact on this company in this macro-environment. The following will be our PESTEL analysis about the wine industry. Political: The wine sales are regulated by government and industrial organization, like national wine association. Wine is one of the alcohol beverage that could cause damage to the human body. Laws, like Intoxicating liquors, and regulations, like Alcoholic Beverage Health Warning Statement, restrain the wine industry in the United States. National Trade Policy and international trade policy also affect the wine sales. For example, according to the international trade policy, its goal is to eliminate the trade barriers. Trade tariffs also includes in the trade policy. High protective tariffs limits the wine exports for all the countries in the world. The Europe import tariff $0.29 per 750-ml bottle, depending on the alcohol concentration. National Trade policy also set up the wine tax in every different states. For example, according to the Tax Foundation, Kentucky owns that highest wine tax rate at $3.17 per gallon. California is one the lowest wine tax states, which has $0.2 per gallon. Economic: Foreign exchange rate affects the Naked Wines. Naked Wines company is online sale company, founded and located in England, Europe. The demand of wine is selling globally. Dollars affects the wine sales globally. For example, according to the Wine Economist, U.S dollar can increase or decrease the sale of wine. The value of U.S dollar falls from $1.4 to $1.1 in recent two years. Meanwhile, a bottle of wine decreases its value from $14 to $11. Economic growth patterns is one of the reasons, affecting the wine sales. According to the Wine Economist, due to Brexit, wine sales in UK is the most affected and is dropped by twofifths, while sparkling and commercial wines would drop by a little less than a quarter. All of the drops result from 16% decreased by UK economic growth. It also turns into that the volume of UK wine consumption would decrease 28%. Some experts expect that the price of a wine would increase 22% by 2025. Social: Due to changing tastes, beer is shifting away and more wine is consumed. According to the Economist, beer has passed its peak zone in 2013 and more wine has been consumed in recent years. It mainly results from changing tastes. Lifestyle is closely related to wine consumption. From 2012 to 2013, wine consumption increases around 4.6% in the United States. People are more willing to buy more expensive wine. Meanwhile, those who buy the wine drink in most laid back occasions or in a bar. Nakedwines.com also utilizes many social media tools to advertise their business. They build up their official account on Instagram, Pinterest and even publish their official videos on Netflix. By using social media, they could share their business and create values for their customers and Angels. Technological: Naked Wines is a online community that allows people invest and order wines in their website. By building their own website, customers could access their account at anytime and from anywhere. Not only website, Nakedwines.com also build up its own mobile app. With

mobile application, the interaction of customers and winemakers has significantly increased. Naked Wines is highly automated and helps buyers and sellers to get connected. Its own rating system helps buyers to select the products and leave the comments. Environmental: Naked Wines company helps winery owners sell the wines. Increased wine consumption increases the plantation of grapevines. As people pursue the better taste and great quality of the wines, winery owners cultivate more grapevines. It actually help the agriculture around the world. On the other hand, climate change also affects wine industry, including Nakedwines.com. Most grapevines grow between 12C and 22C. Since the global warming increases the degree, obviously, the amount of grapevines decreases. Nakedwines.com requires a better quality of grapevines and also helps winemakers to grow. Legal: Naked Wines company operates and sells wine in many countries. Selling wines follows the local laws and alcohol regulations. Naked Wines company also has their own agreements and conditions for their angels and customers. To protect the benefits of their customers, angels and customers must follow those rules. Shipping and return is also one of the policies that maintain the quality of wines.

Five Forces Analysis

Competitive advantages

Due to these Organizational capabilities

1. retain nearly a full gross margin (less costs of packaging and shipping) on sales to customers

1. DTC channel (Get rid of the intermediaries (wholesalers, distributors,wine critics etc)

2.

high quality and loyal supplier/winemakers

2. Finance suppliers (winemakers)- let them focus on making brilliant wines Build brand for small winery, , give them a chance to create their own brands, and invest in top quality grapes to produce wines equal to the best at a fraction of the price.

3.

stable and loyal customers

3. Customers sign up for Angels， who invest their $40 per month for their favorable winemakers. Make its customer becomes internet wine investers Pull model 4. that customers and winemakers—via crowd sourcing and crowdfunding—were also part of the ecosystem of the business

4.

Great social integration 5. strong logisted operation and know clearly about the state tax law for alcohol

5. currently ship to 43 different states

besides Alabama, Arkansas, Delaware, Kentucky, Mississippi, Ohio, Oklahoma, Rhode Island, Utah And counties or cities where wine shipping is prohibited.

Because state tax laws vary for alcohol — and in some states, the taxes are different based on the percentage of alcohol — never mind tracking cases of wine. The company had to develop a whole software backend to track the alcoholic grape juice flowing throughout the company’s logistics network. For tax and legal compliance purposes, each individual bottle is tracked from the winery, via the company’s three distribution centers in California, Florida and Ohio, to the consumer.

Competitive Advantages: Naked Wines has its competitive advantages to survive in the high-rivalry wine industry. First of all,

Organizational Capabilities

Financial Analysis This section presents the financial analysis of the Naked Wines business. Over the last years of its operations, the business has raised more than $10 million in the venture capital funds for its expansion. The wine retailer uses the Silicon Valley model to raise funds. In this framework, the investors will allocate their money to startups with the aim of making more profits in the future after the business grows. Using this concept, anyone can invest in Naked Wines by committing $40 a month through the Nakedwine.com account (Mariani et al. 70). Angels in the UK invested $20 every month while in United State and Australia each invested $ 40, which served as the payments and capital to build the private investors account. In the year 2014, the firm reported sales amounting to $53 million, which by then represented a 40% growth of the Naked Wines sales. In 2015, the company hit sales of $100 million. Achieving this sales milestone shows their business model: how the beverage company is crowd-funded, its good website distributor network to all its stakeholders, the role of the grape suppliers, and those who discover and drink wine. The $20 monthly charges are invested directly to the winemakers; hence the firm does not need to spend money on sales and marketing. Because of cost reduction, they sell the wines at a wholesale. The online business is approximated to have a net worth of $3,982 with an average CPM of $ 3.8 on a daily basis. The wine establishment notices the rapid growth since it has ruffled the leaders and fathers of the prominent winemakers, dealers, and the distributors of the traditional wines. The Naked Wines has been experiencing an increase in revenue since 2013, and the profits are more significant with the cost turned around. This analysis indicates a better cost control for the firm. Despite the existence of business rivals, Naked Wines remains a dominant leader in the wine industry, having the highest accrued profits for two years consecutively (Postman 133). The company’s stock price has increased in value, which proves the continued investor confidence and continued payment of the monthly charges by the angel investors to the firm. The sales of the business are increasing and are expected to rise higher through the introduction of the pay on delivery option for consumers of the wine in their comfort zone, which no any other rivals in the market have embraced. The net income of Naked wine is higher compared to its primary competitor. Thus, there is an increase in the business sale, yielding more profits for the firm.

SWOT Strength Weakness Threat

Opportunity

Reference

“The Wine Institute.” 2015 Annual Economic Impact Grows to $57.6 Billion in California, $114.1 Billion in U.S. - The Wine Institute, www.wineinstitute.org/international_trade_policy. Trejos, Jose. “How High Are Wine Taxes In Your State?” Tax Foundation, Tax Foundation, 15 June 2017, taxfoundation.org/high-wine-taxes-state/. Rrd. “Wine Laws, Regulations, and Public Guidance.” TTB | International Affairs| Exporting Wine, www.ttb.gov/wine/wine_regs.shtml. Veseth, Mike. The Wine Economist, wineeconomist.com/category/economic-impact/. “Around the World, Beer Consumption Is Falling.” The Economist, The Economist Newspaper, 13 June 2017, www.economist.com/blogs/graphicdetail/2017/06/daily-chart-8. Mariani, Angela, et al. "Consumers' Engagement in Co-Creation of Value and Crowfunding: Naked Wine as a Best Practice." Calitatea, vol.15, no.143, 2014, pp. 70. Sandra, K. Newton, and Armand Gilinsky Jr. "NakedWines.com- Disrupting the Wine Industry." Sonoma State University , 2010, https://hbr.org/product/nakedwines-com-disrupting-thewine-industry/NA0375-PDF-ENG. Accessed May 2018. Postman, Jeffrey D. "Naked Wine: Letting Grapes Do What Comes Naturally." Journal of Wine Economics, vol.7, no.1, 2012, pp. 133. Clapperton, Guy. This is social commerce: turning social media into sales. John Wiley & Sons, 2012....