A Report On The Wine Industry, Based On Analysis And Theories For The Current Market

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Introduction This report will discuss whether or not to invest in Tunisian wine industry, based on analysis and theories for the current market. It will point out all the advantages and disadvantages of investing in there and will make a recommendation based on many factors. The first part will talk briefly about Tunisia and will point out all the relevant information that can affect a newly started business in there. It will also go in depth by inserting Michel Porter’s national competitive advantage of industries (Diamond Theory) into the discussion of this subject. The second part will discuss two managerial issues the organization may face while doing business in there. Finally, part C will introduce two suitable methods of entry…show more content…
The Arab in there count for 98% or the total citizens and the rest 2% are Europeans and other ethnic groups. Because most of its citizens are Arab, Muslims count for 99.1% of the total population, which makes it an Islamic country that follow that Islamic rules. Moreover, the main language used in there is the Arabic language followed by English and French, however, the government is trying to make English is the main business language (Central Intelligence Agency, 2014) (Statistiques Tunisie, 2014) Islamic Law and Wine Industry The Islamic law persisted even after the riot, when a political group called Al-Nahda won with 41% of the seats voted that the main source of legislation is Islam (Sabek, 2013). Because Islamic law prohibit the trading/consumption of alcohol, many consumers tend to go to the hotels or the black market just to buy wine (Euro Monitor, 2013). In addition, Tunisia wine experts declared that the sales of wine have decline in the period between 2008 and 2012, and it will keep on falling for the upcoming few year, due to some farmers no longer want to work and produce grapes for wine for religious reasons, as well as the cost price has increased and a continuant decrease in the wine grapes price compared to the other similar products does not cover the cost (Market Research, 2013). Corruption Based on the Organization for Economic Cooperation and Development (OECD) report (2013), Tunisia have set
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