The Structure Conduct And Performance Essay Example

indirectly employs over 41,000 jobs in supporting industries. Although there are good supply conditions in Scotland, with all the ingredients for whisky readily available and a skilled workforce, the industry is experiencing a drop in demand. This can be attributed to a lack of appeal for the product among younger consumers and a decrease in consumption among older consumers aged 45 and above.

Collaboration between the Scottish Executive and the Scotch Whisky Association is focused on achieving equitable taxation for Scotch within the UK and EU, as well as the implementation of duty stamps to combat the 'grey' market. The industry's obstacle moving forward is striking a balance between enlarging its younger consumer demographic and retaining its traditional base. While maintaining its emphasis on quality, rationalization of brands is likely to occur in the future.

Scotch producing companies may choose to eliminate declining brands and focus instead on expanding in growth markets. As the majority of Scotch sales are externally controlled, it can no longer be considered a purely Scottish product. While continuing to support the industry, the Scottish Executive should also monitor the ownership structure.