Global Wine War 2009: New World vs. Old World Competitors

2129 WordsJan 31, 20188 Pages
Global Wine War 2009: New World versus Old 1.Discuss critically the competitive advantages of New World wine producers and contrast these against their Old World competitors. The New World wine producers including Australia, Argentina, Chile, South Africa, and the United States have several strategic advantages over their Old World competitors. Most significant is how each of the wine producers in New World competitive economies are free to innovate, creating disruption and value creation that are redefining centuries-old processes. In the best-selling book The Innovator's Dilemma (Christensen, 2007) Dr. Clayton Christensen of Harvard University discusses how new market entrants, unencumbered by decades or in some cases centuries of government intervention and high cost structures, can quickly overtake a market and establish market dominance. The role of disruptive innovation in redefining value chains is a core message of his research and book (Christensen, 2007). This is exactly the same dynamic occurring between the New World and Old World wine producers. At the center of the New World win producing nations' competitive advantage is the freedom and immediate economic benefits of innovation. The scope of the innovation expertise that New World wine producers have is value-chain wide in scope, and in-depth enough to completely re-order manufacturing, fermentation, distribution channel, pricing, marketing and customer service (Cholette, 2009). New World wine producers

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