Increase in the power hold by the retailers:the sources used by the wine manufacturers are the distributors and retails which act as a link between the customer and the company and affect the sales of the wine company. In New Zealand,the major selling activities of the wines are done by the retailers and the distributers. Due to this dependence on the retailers and the distributors,the power hold by the retailers increases and this results in increase in the profit margin of the retails and decrease in the profit margin of Framingham Wines.The major problems arise due to this issue of lack of economies of scale, higher cost and low profits to the wine manufacturing companies (Shimul, 2016).
Shift in the demand pattern: the major problem faced by Framingham Wines is due to the change in the taste of the customers. This change in the taste increases the need to analyse the taste and preference trends of the customers with the help of research. The concern related to the health and safety is increasing in the customers as consumption of alcohol is dangerous for the health of the individual as well as the people living around the individual consuming alcohol (Singh etal., 2016).
Increase in the level of competition between the countries:the rise in the trading across the border gives rise to tough competition at both the domestic and global level. New Zealand wine makers are producing wines in new and innovative manner which act as competitors of Framingham Wines. These wine makers generate competition in the production and marketing activities of Framingham Wines.