Essay on Industry Analysis Report the Australian Wine Industry

Wine production involves two parts of economic activity – viticulture and wine making in the winery. In the global context, wine production is dynamic due to the influence of globalization, technological advancements and extensive research. These have essentially influenced the nature, spatial patterns and the ecological dimensions of the wine industry.

Bonny Doon Vineyards, a successful winery business based in Santa Cruz, California, has grown from selling 5,000 cases of wine a year in 1981 to 200,000 cases a year in 1999. To keep growing and be more profitable, the business must choose amongst three possible strategic directions. The first strategy is to start importing wines from Europe into the United States. The second alternative is branching into a retail outlet for unusual wines of great value, accompanied by a high level of service. Lastly, the business’ D.E.W.N could be expanded to include wines not made by the company itself but by other wineries that follow the same values and philosophy.

With per capita wine consumption increasing and per capita beer consumption decreasing, Stratus has the opportunity to capitalize on Canadian drinking preferences. While Generation Y has become the new shopper (Neilson 2009), they have the least discretionary income of all the generational cohorts and the younger portion is not legal to drink alcohol in all provinces of Canada. Stratus will be challenged to target the largest buying power in Canada.

Bonny Doon currently has an enviable position in the 1990’s Californian wine-producing industry. The company has successfully differentiated itself from its competition and achieved a first mover advantage in terms of selling “undervalued” wines. However, due to increased rivalry and a changing and increasingly challenging market,

Champagne Jean Pernet is a small family vineyard situated in Mesnil Sur Oger, which is in the heart of the Champagne region. Its vineyards span across more than 40 hectares, serving mostly the French market, wine merchants and private clients.

There are many different suppliers for the different types of product lines. This makes it easy for companies in the industry to secure a supply. As Corning is a large company, it is able to negotiate good prices from suppliers. There are many suppliers that are willing to cooperate with Corning because they can earn substantial profits from Corning’s businesses.

The structure of the wine industry is quite different around the world. The barrier to entry is relatively higher in the New World than in the Old World. Referring to the market data on the level of concentration in 1998, people can see a few players dominate the markets in Australia and the U.S. while the level of concentration is quite low in Europe. Therefore, the rivalry in Old World is intense there.

This discrimination substantially limits the direct sale of wine to consumers, an otherwise booming and significant business.

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

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

The report first delivers a background of market attractiveness and uncontrollable macro-economic factors relevant to market entry such as the political and economic climate, socio-cultural, legal, environmental and technological factors that may effect and influence the international marketing practices of the organisation in entering the Chinese Wine Market.

Mondavi’s strategy of making more premium wine as its strong growth and high profit margins. International

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

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.

A proper research isn’t just to guarantee you know what you are getting into, it is also to ensure you make the right choices to help you succeed with your winery. You don’t want to start growing grapes, for example, that aren’t suited for your climate.