Global Wine War 2009

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Global Wine War 2009 : New World versus Old How were the French able to dominate the worldwide wine trade for centuries ? What sources of competitive advantage did they develop to support their exports ? France and the Mediterranean region is closely tied to the Wine History. It has started since the Roman Empire, and has been fully integrated to the European culture with the Christian era : Monasteries planted vines and built wineries. The nobility started also planting vineyards as a mark of prestige. In this early market, France has been dominant thanks to key advantages : 1. Factors Conditions : First, their geographic and climatic features played significant role. As France is in the middle of Europe culture with suitable…show more content…
On a contrary, The main vulnerable aspects of French wine industry were highly fragmented vineyard and wine production, increasing vineyard prices per acre, complex distribution and sales system, long multilevel value chain, risk of bad weather and disease; and poor roads and complex toll and tax system. Those aspects contributed to the decline of French wine on the market. What advice would you offer today to the head of the French wine industry association ? The extent of differentiation was a governmental classification system of quality based on rules and controls. => The wine market was complex and highly fragmented. The classifications helped customers understand purchase Focus was on large volume production, not quality => Wine became culturally and economically significant. In 1750's, France was the 2nd largest exporter after Italy. As the Global Wine Wars article mentions, marketing style, freedom and willingness to innovate, wine style, and business models of the New World are good starting points for the Old World to copy. In order to compete effectively with the “New World” markets, the “old world” wine producers need to cooperate on various levels. Deregulation of many of the existing laws that appear to be competitive barriers would be a starting point. Getting the European Union to review the AOC, DOC, and WDQS classifications to create a vastly simpler system would make it easier for them to penetrate the

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