PESTEL Analysis of Wine Industry Essay

Custom Student Mr. Teacher ENG 1001-04 19 March 2017

PESTEL Analysis of Wine Industry

A Macro-Environmental Analysis of the Wine Industry in Turkey A factor that influence a company’s or product’s development but that is outside of the company’s control is known as macro environment. In this paper, all dimensions that affect that wine industry in Turkey are investigated. It is important to observe the wine industry in terms of political, economic, socio-cultural, technological and natural aspects; it is called as PESTEL analysis. This analysis which provides the deeper look into this large sector can be found below. Socio-cultural Environment There is no significant change in the demographic side of the wine sector recently.

However it is known that Turkey consists of mostly Muslim citizens and this brings the religion-related factors with it. The majority and the current government create several unwritten rules among the society. It can be called as social and cultural pressure which comes with the demographic structure of Turkey. Economic Environment Turkey has a serious progress in terms of wine production in last 10 years3. Wine production contributes to number of high quality tourists in Turkey. So, it increases the tourism incomes. However, the availability of wines in markets, stores is getting hard.

This problem puts producers in a difficult situation. There is high tax issues in wine industry. Natural Environment The natural environment involves the natural resources that are needed and sustainability of the wine industry in Turkey. Wine production in Turkey goes back a long way and it seems there are adequate resources to continue this sector, such as huge vineyards, many boutique and institutional producers1. Wines are getting better and better. Those made from indigenous grapes like Okuzgozu and Bogazkere are igniting international interest. Turkey is experiencing a wine renaissance. Technological Environment

Technological environment involves forces that create new technologist creating new product and marketing opportunities. Ak? n Ongor says that the sales troubles of this sector should be solved. Internet is so important channel. If the distribution problems cannot be solved, no wine producers can survive3. Political Environment The political environment is changing in accordance with the current government’s perception but it can be said that the wine industry has hard times. Coskun Guner2 says, “As we said in each platform, Turkish viniculture should be held as a government policy, because this product has a high added value.

Because of high taxes, people cannot invest; it is hard to struggle in this sector with competitors”. He also indicates that the “viniculture congress” must be organized. In this congress the wine sector should be discussed and the solution methods should be implemented2. Legal Environment Probably, the most important element of this analysis is legal environment including the restrictions and regulations. There are some examples of recently increasing legal restrictions in wine industry: “It’s not easy to sell wine without having ads or ways to explain about the winery or show reviews telling how good a new wine is,” Ali Basman said1.

The legislations about advertisement for whole alcoholic beverages begin to be very harsh in those days. The regulations make the wine illegal for shops to sell alcohol between 10 p. m. and 6 a. m. and to display bottles where they can be seen from the street. New restaurants and shops near schools or mosques can’t offer wine at all1. Ard? c Gursel says that, “If someone orders a wine over the phone, I won’t be able to deliver it. These regulations are quite heavy. ”1.

REFERENCES 1 http://www. bloomberg. com/news/2013-06-16/turkey-s-vintners-under-siege-as-bans-crush-winemakers. html.

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