Global Wine War

The winery industry can be categorized into red and white wine segments. The red wine segment, measured by tonnage of varietals crushed, has grown at a compounded annual rate of 4.7% for 10 years from 1989 to 1998, and a year over year growth rate of 8.2% from 1998 to 1999. Judging by the strong growth rate experienced in the red wine segment, it is reasonable to conclude that the red wine segment is in the growth phase of the life cycle model. In addition, production of red wine varietals which are relatively unknown such as syrah and sangiovese nearly doubled in a year from 1998 to 1999. The white wine segment, however, is at the mature phase of its life cycle as the segment shrunk slightly by 0.42% from 1998 to 1999. Overall, the industry is still at the growth stage lead by growth in the red wine segment.

In the 1960s, 1970s or even 1980s, if you ask someone, which countries produce the best wine in the world? They would have said France, Italy or Spain. However, if you ask someone the same question nowadays, the answer would be different. The new wine industry players such as Australia, the United States and Chile are changing the global industry structure, leading the global industry trend, and challenging the traditional wine makers by introducing innovations at every stage of the value chain.

3. What advice would you offer today to the French Minister of Agriculture? To the head of the French wine association? To the owner of a

The buyer’s power within the wine industry varies between different places in the world. There are for example strategic differences between Europe and the “New World”. The “New World” includes countries like the US, Australia, Chile and South Africa. In Europe there is a big competition

Briefly describe the changing economic geography of the global wine industry in terms of production, distribution and consumption.

“By the Christian era, wine became part of the liturgical services, and monasteries planted vines and built wineries. By the Middle Ages, the European nobility began planting vineyards as a mark of prestige, competing with one another in the quality of wine served at their tables – the first niche market for premium wine.” The French were the dominant competitors in an increasing global market because they believed in the same old tradition that brought so many of their ancestors’ success years prior. Many consumers

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

Vincor International goal is to become one of the top five wine companies in the world in terms of earnings. In order to attain this goal they have implemented a corporate strategy that focuses on using their existing powerful position in market to help them developing sales, marketing, distribution capabilities on an international scale. The strategy also includes acquiring new wineries and wine brands in new emerging region in the wine market also called “New World regions”(Vincor, 2005) throughout the world.

The big goal and major objective of this plan is to enable The Hunter Valley Wine Company increase production of good quality wine to meet the increased demand for wine in China, Singapore, Japan, South Korea and other Australian and International major wine distributors which occupy a significant niche in the Asian wine markets. Hunter Valley Wine Company is facing tough competition from other Australian wine distributors who are beginning to exert pressure to either increase production of high quality wines or be faced out of the market. Australia has been accredited with production of high quality wines and the demand for the product is overwhelming in Asian markets. Other objectives set to be achieved by

In 2001 there were over 1 million wine producers worldwide, and no firm accounted for more than 1% of global retail sales. Because of this, it would be nearly impossible for the Robert Mondavi winery to dominate sales in any region. Due to Mondavi’s efforts, the winery became one of America’s most innovative,

1. French wine makers continue to lose global market share due to the entrance of new competitors from Australia and other “New World” wine makers. French wine makers face an existential threat should they concede the U.K export market.

The immediate future looks promising for the wine industry. In 2012, the industry is expected to grow by 4.4%, and will only increase through 2016 [ (IBISWorld) ]. The wine industry relies on a three-tier distribution system. The producers sell to the wholesalers, who then sell to the retailers. The national sales tier consists of suppliers who sell to a wholesale distributor [ (Tincknell & Tincknell) ]. As suppliers continue to consolidate, the larger producers will have the upper hand due to

The attractiveness of the US market was due to Generation Y who embraced wine much more than Generation X. These consumers were price-sensitive, internet savvy, and well educated about their purchases. Furthermore, these consumers chose more for imported wine. The result of this attractiveness is that the US became a huge player in the

The following project goes deep to explain the current situation of the Lebanese wine industry. It begins by giving a brief introduction about the current economic situation in the country. Then it gives a detailed explanation the industry economic situation and of the rival forces (Rivals, Supplier bargaining power, Buyers bargaining power, substitutes, new entrants), its effect on the industry, and the amount of risk it contains.

The assignment for this week was to write a paper based on the case Global Wine War 2009: New World versus Old. We experienced that it was an interesting case considering both Porter’s five forces model and Resource-Based theory, because they give two different perspectives of competitive advantage: Outside in and Inside out. Besides that we could have a closer look at innovations and what they mean for the competitiveness in the world wine market. In this paper we make an effort in explaining what the main aspects are of