BUSN316 F3

Evaluation of a new business and its chances for success

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The Texas Hill County region is known for its prominence in production of wine (Anderson, 2010). The county is the second largest in wine producing county in the nation with the best quality and flavors of wine (Anderson, 2010). The region is quickly gaining prominence due to its large number of wineries and numerous award-winning wineries. The region has a large influx of visitors who are wine enthusiast and contributes a substantial percentage to the economy of the state (Anderson, 2010). Developing a high quality winery start up in Fredericksburg, Texas which includes a retail store, tasting room, wine tours, hospitality accommodations and meeting rooms. The business incorporates a vision of establishing a producing vineyard.

The business will require gathering of knowledge and skills required in the winery business (Tracy, 2015). This involves knowledge of the market, the skill involved which are wine experts and wine making among other skills. With the existence of many other wineries and the large influx of visitors, the market is large. Since it is not a home run business the business requires careful preparation in terms of finances, personnel and machinery (Milne&Bjergegaard, 2013).This is crucial in ensuring that the business meets its goals and objectives. Finally, a well laid out business plan is crucial in the business.

Chances of success for the business are high due to various reasons. The market for the products and services the business has to offer is already in existencewith a favorable size and shape (Milne &Bjergegaard, 2013). This is due to the large number of visitors estimated at around 1million annually (Anderson, 2010). The growing prominence of the region is also a contributing making the business valid. In addition, the location of the business is a contributing factor since it will be located in an area with a large influx of wine enthusiasts who are the target customers. Further, the use of differentiation strategies will assist the business acquire more customers from its competitors (Tracy, 2015).

However, high competition from other wineries in the region poses a threat to the success of the business. Since, the business will be new to the market chances of survival are minimal due to competition from other wineries that have existed for a long period. This creates barriers to entry into the market in terms of pricing, customer loyalty among other factors (Milne &Bjergegaard, 2013). Further, award-winning wineries are positioned well in the market posing a challenged to the new business.

References

Milne, J. &Bjergegaard, M. (2013).Winning without losing: 66 Strategies for Succeeding in Business While Living a Happy and Balanced Life.London: Profile Books.

Tracy, B. (2015). Business Strategy.New York: AMACOM.

Anderson, T. (2010).The Texas Hill Country: A food and Wine Lovers Paradise. Texas: Shearer Pub.