Global Wine War

6128 Words25 Pages

Human beings have been dealing with wine for thousands of years, from the Mesopotamians to the ancient Egyptians, from the Greeks to the ancient Romans, the latter which under their vast empire spread viticulture through the Mediterranean region. Through centuries countries, such as France and Italy, obtained a consolidated position in the wine industry, both in demand and production.

In the last part of the 20th century newcomers (Australia, South Africa, New Zealand, Argentina, Chile, USA, etc.) have successfully challenged the leadership of the so-called Old World that represented the majority of global market share.

Wine Industry Analysis using the Porter’s Five forces Model
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Figure 1.2: "Chain Value Model” by Michael Porter

The use of new technologies and new organizational approaches are also incident on the quality of the final product, which is granted by the integration of the processes and an efficient network strategy by the newcomers, while in the OW these challenges have not been answered yet.

One of the largest disadvantages the mature competitors are facing concern the activity of marketing and sales, where due to the newcomers approach they are loosing the market confront. The Old World is exploiting factors largely underemployed by the Europeans, the use of professional marketing, market researches try to understand and forecast the market in order to be more responsive to the real needs of the demand. The correct use of branding from part of the NW producers is resulting as one of the strongest competition advantage towards the OW ones.

Concerning the support activities the situation does not vary, the new-comers have advantages in the firm infrastructures mainly because of a more efficient organization of the all networks and because of a better organization and integration of the production chain.

As regards to the Human Resources Management the differences are mainly a consequence of the

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