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Ceja Vineyard

In: Business and Management

Submitted By Tab01250
Words 260
Pages 2
Ceja vineyards entrance into the distribution market of the winery may be faced with several forces from competition. The first is a threat as a new entrant. As a new entrant targeting the U.S. Hispanic consumer segment, may require Ceja to revamp their premium wine Ceja is known for. The may incur substantial incremental promotional expenses, and they may lose their rapidly growing sales channel of their wine buying club.1 Ceja access to distribution channels can be a barrier to entry also, because of the new entrants’ need to obtain distribution for its product. As a new entrant they may have to persuade the distribution channels to accept its product by providing extra incentives which reduce profits. 2
There is also the threat of the same products being offered at a cheaper price that are easily used in the same manner. Ceja wine is typically to be enjoyed with Mexican cuisine. Another vinery may offer the same brand of wine at a cheaper cost and is easily accessible in various markets. The lower the prices of substitutes and the higher the quality and performance of substitutes, the more intense are the competitive pressures posed by substitute products. 2
Bargaining power of the customer, why should someone chose Ceja? Ceja uses grapes that are grown in their own vineyard.

Ceja produces enough grapes that they currently
This paper is still a work in progress, be patient with me as I try to collect more information to finish this paper. I hope to gather further information from other

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