Czechoslovakian Wine: Strategy in a Liberalized Economy

Examines through a case study and commentary the strategic situation facing a large Czechoslovakian drinks producer, Vino Mikulov. The case material illustrates the extreme uncertainties and difficulties faced by wine producers in newly liberalized economies. Government continues to regulate the supply of grapes and bottles remain a state monopoly, with resulting difficulties for the wine producer. The Czechoslovakian wine market is found to be regional and price‐sensitive with consumers demonstrating a low level of brand loyalty. Also considers factors underlying import and export. The directors of the newly privatized enterprise have developed a set of strategies that provide a coherent response to the uncertainties of the market. A process for the rapid development of new products is in place together with product labelling, although pricing and promotion remain relatively neglected decisions. The overall strategy is one of flexibility, limiting vertical integration and a rapid development of the product range.