Competition in the Global Wine Industry:

11105 Words Jun 6th, 2005 45 Pages
Competition in the Global Wine Industry:
A U.S. Perspective

Murray Silverman
Professor of Management
College of Business
San Francisco State University
1600 Holloway Avenue
San Francisco, CA 94132
Phone: 415-338-7489
Fax: 415-338-0501
Email: msilver@sfsu.edu

Richard Castaldi
Professor of Management
College of Business
San Francisco State University
Phone: 415-338-2829
Fax: 415-338-0501
Email: castaldi@sfsu.edu

Sally Baack
Assistant Professor of Management
San Francisco State University
College of Business
Phone: 415-338-6421
Email: sbaack@sfsu.edu

Greg Sorlien, MBA
San Francisco State University
College of Business

Competition in the Global Wine Industry:
A U.S.
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wineries are implementing strategies to compete against foreign producers.
Overview of Wine

The dynamics of the global wine industry are better understood through a brief history of wine as well as an overview of the wine making process. Some countries have longer historical and cultural ties with wine then others and that can affect the quality and perception of the product in the eyes of the consumer. Also, the conditions in which the wine grapes are raised and the processes used to make the wine can create a superior wine and therefore a competitive advantage.

Wine has been a part of Western history since the Neolithic Period (8,500-4,000 B.C.), when cultures first started to develop permanent communities, and stopped being nomadic hunter-gatherers (U. Penn, 2000). One of the earliest written records of the consumption of wine is recorded in the Bible and the impact of wine on Mediterranean cultures became more pronounced over the years as the geopolitical situation stabilized in the region under the Roman Empire. Roman Imperialism helped to spread the production of wine across most of the countries in the Empire, which included most of North Africa and Southern Europe (Britannica, 2000). During that same era, wine became ingrained in the Christian faith and is still used in Christian mass today. The close tie between wine and the Christian faith aided to the spread of wine production and wine consumption across Europe

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