Global Wine War Essay

1738 Words Oct 16th, 2011 7 Pages
1. How did the French become the dominant competitors in the increasingly global wine industry for centuries? What sources of competitive advantage were they able to develop? Where were they vulnerable?
By the Christian era, wine became part of the liturgical services and monasteries planted vines and built wineries and the European nobility began planting vineyards as a symbol of prestige, competing in quality of wine they serve on their table, i.e. start of premium wine market. French wine producers became the dominant competitor as a result of four reasons. First, their geographic and climatic features played significant role. As France is in the middle of Europe culture with suitable climate and soil condition for harvesting grape,
…show more content…
Vineyards and wine makers had been set up in many New World countries since the 18th century, but consumption was not as high as it was in European countries. By the 1960s, the New World countries entered in the wine industry and became a key player in the market with challenging the production and marketing norms.
The New World countries had several advantages over traditional producer countries in production norms. First, suitable land was widely available and less expensive, allowing the growth of much more extensive vineyards. Second, unconstrained by tradition, they began to experiment with grape growing and winemaking technology; they used mechanical harvesters, irrigation methods. Other experiments with fertilizers and pruning methods increased yield and improved grape flavor. Third, they broke the many wine making traditions and used on-site labs to provide analysis helpful in making growing and harvest decisions. Lastly, as a result of these innovations in production they were able to reduce their cost per tonne nearly to half of French wine.
Also, there were challenges on marketing and demand side. First of all, the consumption per capita of wine in traditional producer countries were declining since 1966, but it was increasing for New World countries. Secondly, the New World

More about Global Wine War Essay

Open Document