Global Wine: New vs. Old World

Topics: Wine, Terroir, Winemaking Pages: 26 (8146 words) Published: February 18, 2011
Global Wining: New vs. Old World
An Analysis of New and Old World Wine Countries
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Outline
I. Executive Summary ...................................................................................................................... 3 II. Background................................................................................................................................. 4 III. Industry Analysis: Australia....................................................................................................5-7 A. Challenges ...................................................................................................................7-8 1. Public perceptions

2. Fragmentation of wineries
3. Overproduction
4. Climate
5. Trade regulations
6. Substitutes
7. Education
8. Piracy
B. Porter’s Five Forces...................................................................................................8-10 1. Comparative rivalry
2. Threats of new entrants
3. Bargaining power of buyers
4. Bargaining power of suppliers
5. Threat of substitutes
C. Recommendations ........................................................................................................ 10 IV. Industry Analysis: United States.............................................................................................. 11 A. Challenges ...............................................................................................................12-13 1. Market share

2. Cost of land and labor
3. Highly regulated
4. Fragmented market
5. Substitutes
B. Porter’s Five Forces.................................................................................................13-14 1. Comparative rivalry
2. Threats of new entrants
3. Bargaining power of buyers
4. Bargaining power of suppliers
5. Threat of substitutes
C. Recommendations ........................................................................................................ 15 V. Industry Analysis: France.......................................................................................................... 15 A. Challenges ...............................................................................................................15-18 1. Regulations

2. Quantity over quality
3. Poor marketing
4. Value chain deficiencies
5. Flexibility to consumer demands
6. Oversupply of grapes/Pricing pressure
7. Increased consolidation
8. Shift in consumer behavior
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B. Porter’s Five Forces.................................................................................................18-19 1. Comparative rivalry
2. Threats of new entrants
3. Bargaining power of buyers
4. Bargaining power of suppliers
5. Threat of substitutes
C. Recommendations ........................................................................................................ 20 VI. Alternatives and Recommendations....................................................................................20-22 A. New world

B. Old world
C. Short and long terms goals
VII. Concluding thoughts............................................................................................................... 23 VIII. Appendix ............................................................................................................................... 24 IX. References............................................................................................................................... 25 - 3 -

Executive Summary
In 2011, the global wine market is forecast to have a value of $273.1 billion, an increase of 19.9% since 2006. The large wine industry is led by key nations that are characterized and differentiated by the application of technology or lack-of, influence of culture and tradition and government regulation. These nations are classified as “New World” and “Old World”, of which the latter needs to compete and eventually change in order to keep up with the newcomers.

The United States and...
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