COMPETITIVE STRATEGY OF WINE INDUSTRY

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COMPETITIVE STRATEGY OF WINE INDUSTRY
The wine may appear to be a simple drink with limited variation available, has turned into a multibillion dollar a year industry with enormous variation and an increasingly sophisticated consumer base. The variation available and changes in the age groups who are becoming the major markets for wine producers have created visible market trends that cannot be ignored. These trends also affect the global market.
Focusing on market scale and branding expertise, these opponents have capitalized on the globalization of the wine industry. Recently, more and more wine production is taking place in “New World” regions such as parts of
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Though there are other customers, such as Americans which has not the knowledge of the product that may be loyal to a certain product such as a merlot, they do not care who makes it.
Supplier Power:
There are several suppliers. One supplier is the vineyards. These vineyards lack power, the global market has been flooded with grapes from California, Australia, and several other countries. With all of these pressures, there is very high competition and low power of suppliers. Other suppliers such as bottlers are also easily substituted so they lack significant buying power.
Conclusion regarding rivalry:
The problem with the wine industry is the consolidation of distributors and buyers. With so much power in the hands of buyers, a winery needs to be large so that they cannot be pushed around by the buyers. This is why many small wineries have consolidated; they need to be larger to gain bargaining power.

key success factors in the wine industry
BEING DIFFERENT J. Lapsley and K. Moulton [2001] explain in their book “Successful Wine Marketing” how crucial it is that wine products seek a real identity. An appellation’s success is based on its ancestral and rigorous attributes, and of course, on the grower’s competence. A newer approach consists of developing branded wines and assuming that a brand conveys a particular identity derived from its

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