The Competitive Advantage Of The Wine Industry

1777 Words Jun 5th, 2015 8 Pages
In the world of increasingly global competition every nation want to prove its product as the best in the world. This phenomenon is called the competitive advantage of the nation, this can only be created and sustained by immense sense of product knowledge, competition domestically and internationally. Wine industry is the one which faces the competition between the traditional wine makers of the old world and the sophisticated wine producers of the New world. The healthy competition among the producers and suppliers makes the consumers successful by providing the best quality. The Old world refereed here constitutes the countries in Europe specifically France, Italy and Spain and the New world refers to US, Chile, Argentina and Australia. France’s dominance of the wine industry has increasingly come under threat from emerging wine producers who are more aggressive in marketing their product in the markets previously dominated by France. Although France is still the world’s largest wine producer, it has seen a substantial decline in its global sales over the last one decade arising from a number of factors; some of them internal and others which are external. In this case study we will be discussing about the Diamond of National advantage and how the determinants creates the national environment in which the companies compete with respect to the Wine industry. The…
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