Preview

Global Wine War

Powerful Essays
Open Document
Open Document
2099 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Global Wine War
Global Wine War
By Christopher A. Bartlett
Case Analysis Report

Introduction
The concept of production and sale of wine was originated in the European countries known as the old world according to the article "Global Wine War 2009: New Word versus Old" these are; France, Italy, Spain and Greece. Here the wine culture was developed mainly due to the habits of religion and high society which caused them to have the highest consumption per capita in the world, creating a very attractive and important industry for the governments of those countries.
On the other hand, countries known as the New World, have advanced in this industry breaking paradigms, using marketing strategies that allowed them to gain market share and to weaken its competitors from the Old World. These strategies are based on different forms of production, using technology, new packaging, creating wine segments, and an important support by a government that helps them to minimize the cost of production and sale of wine.
In the next questions we’ll describe what should every country do to continue developing this industry and keep it from falling into its competitor’s hands.

1. How did the French become the dominant competitors in the increasingly global wine industry for centuries? What sources of competitive advantage were they able to develop to support their exports? Where were they vulnerable?
France is part of the old world together with Italy, Spain and Greece. Since the origins of wine, France took an important role since it adopted the culture of wine consumption created by romans and high society classes from this region as well as religious events.
The combination of the characteristics of its type of land, geographic location, weather and culture of wine consumption, made France become the country with the highest wine consumption per capita (120 liters), and the second best wine producer in the world.
France was recognized to be a producer of high quality wine, it was



References: * Christopher A. Bartlett, “Global Vine War 2009: New World versus Old”, Harvard Business School, August 13, 2009. * Tara Holland and Barry Smit, “Climate change and the wine Industry: Current Research Themes and New Directions”, Journal of Wine Research, 2010, Vol 21 pp.125-126 * Wehring, Olly, Californian wine Industry review-Managament, Just-Drinks, 2005 * Amie Sexton, “The French in the Australian wine Industry: 1788-2009”, University of Melbourne, Melbourne, Australia. Exhibit 1

You May Also Find These Documents Helpful

  • Good Essays

    Bonny Doon Analysis

    • 1373 Words
    • 5 Pages

    Traditionally wine was seen as a “pretentious” product in U.S, but by the late 1990’s to early 2000’s, wine started to become a popular social drink for the masses. In addition, the market became more adventurous, demanding unusual “undervalued” wines instead of the traditional wines such as Chardonnay. The adventurousness was driven by “Generation X” and created a significant opportunity for wineries to meet this new unconventional demand. As the industry is still currently in its growth stage, the industry attractiveness is high. Wine is a relatively high margin product, and there is increasing demand domestically and internationally. Because of…

    • 1373 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Bonny Doon Case

    • 2560 Words
    • 11 Pages

    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.…

    • 2560 Words
    • 11 Pages
    Good Essays
  • Good Essays

    The second time period in which wine was created was the rise of the Greek and Roman empire. This time period was based on strong city-states, and when wine was discovered it became a part of Greek and Roman lifestyles. Also political classes were partially based on the type and quality of wine you would drink. Having the access to wine showed whether you were rich or poor, it showed your status in social life.…

    • 2482 Words
    • 10 Pages
    Good Essays
  • Powerful Essays

    PBC Project HvA

    • 7693 Words
    • 31 Pages

    The US has a rapidly growing wine market and is expected a 16% growth up until 2016. Moreover, 13% of all worldwide consumed wine is consumed by Americans, this is because 45% of all American adults drink wine. Evidence indicates that the Eastern part of America are more interested in imported wine rather than domestic wines and this gave perspective to start exports to the state of New York to begin with. As we are expanding to the U.S. we will have to go through a 3-tier system.…

    • 7693 Words
    • 31 Pages
    Powerful Essays
  • Good Essays

    Globalisation – has increased the opportunities for wine industries across the world to expand into global markets. Export has become popular, as there are countries that consume a lot of wine but do not produce any. For example, Luxemburg in Europe is one of the highest consumers in the world with over 200L consumed per person each year. Without the appropriate resources and land area to grow grapes and produce wines – Luxemburg is forced to import wines from other countries. Indeed, globalisation has made this…

    • 956 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Within this report I will assess and evaluate the current International Marketing opportunities of French wine company, Zie Beverages, and in particular will focus on the importation of wine into the United States. I will look to ascertain both the opportunities and risks that the US market may offer to Zie and will look to address each point to achieve an optimal outcome and an effective marketing policy for the company.…

    • 1304 Words
    • 6 Pages
    Good Essays
  • Best Essays

    Beringer Blass Wine Estates

    • 12459 Words
    • 50 Pages

    Gilinsky, Armand; Lopez, Raymond H.; and Castaldi, Richard, "The Globalization of Beringer Blass Wine Estates" (2004). Case…

    • 12459 Words
    • 50 Pages
    Best Essays
  • Good Essays

    New world wines are those produced in the parts of the world where in the 15th-18th centuries were colonised by the European’s, these include South Africa, Chile, Argentina, China, Australia, New Zealand and also USA, which has risen to become the 2nd biggest consumer in the world. These countries have experienced rapid growth over the last decade, driven by success in export markets and it has resulted in an increase in market share. Old world wines are those produced in the traditional winemaking regions of Europe. Europe remains the world’s biggest wine producer where France, Italy and Spain make up 58% of global output alone.…

    • 834 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Scotia Wine Analysis

    • 1756 Words
    • 8 Pages

    In his article, Pellechia briefly introduces a various number of aspects that contribute to wine and how it is present in our world today. One of the main themes that is present throughout the article is how wine has been modernized over time to compete in the globalized world that we live in today. Wine is a unique commodity in that throughout history and even today it has been and still is held to a certain standard of luxury. The production of wine is seen as an artistry of sorts. It’s production, although not overly complex process, is held to a certain quality of standard. This presents a problem in that the signature of being in a modern, industrialized world is factors such as: mass production, efficiency, and a lower cost of production.…

    • 1756 Words
    • 8 Pages
    Good Essays
  • Satisfactory Essays

    France and Italy, top two in the world for per capita consumption, Italy had a small market for imported wines…

    • 978 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Global Wine War Case 2009

    • 1298 Words
    • 6 Pages

    3. Innovation. In the late 18th century, French producers had experienced a massive innovation in the market. Mass production of glass bottles, the use of cork stoppers and the development of pasteurization revolutionized the industry. Those innovation got the distribution and Marketing easier. These innovations increased the stability and longevity of wine which allowed the transportation of wine to distant places, and birth of global wine market.…

    • 1298 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Wine War

    • 592 Words
    • 3 Pages

    How did the French become the dominant competitors in the increasingly global wine industry for centuries? What sources of competitive…

    • 592 Words
    • 3 Pages
    Good Essays
  • Good Essays

    California Wine History

    • 784 Words
    • 4 Pages

    Certainly wine, as a natural phase of grape spoilage, was "discovered" by accident, unlike beer and bread, which are human inventions. The first efforts at grape cultivation can be traced to the area that forms the "Fertile Crescent", around the Caspian Sea and in Mesopotamia, including portions of present-day Georgia, Armenia, Azerbaijan, Iran, and Turkey.” Wine has been dated from times as far back as biblical times around 500 B.C. These places are where wine was originated. Ancient Greek wines were coarse and are now considered to be a concentrate. Egyptian wine was viewed as a lesser wine because they imported wine in from the Greek. Over time wine has become a more popularized beverage. Wine was more often drank in continents such as…

    • 784 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Greek Wine

    • 1056 Words
    • 5 Pages

    Wine, one of the most famous and popular indulgences of all time has known to inspire many artists, musicians, entrepreneurs as well as many cultures around the world. The breath taking ensemble of aromas and extracts of fruits and flowers can stir up even the most boring of conversations. Throughout history, wine has affected many different civilizations and continues to flourish across the entire world. The very first encounter with wine has been traced all the way back to The Stone Age according to archaeologists (National Geographic).…

    • 1056 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Wine Industry

    • 4543 Words
    • 19 Pages

    The United States wine industry is a 12 billion dollar industry and is composed of 7,000 wineries and around 1,800 different companies. The three major companies within the industry are Constellation brands, E&J Gallo, and The Wine Group Inc. The industry has made its way through the economic crisis at a better rate than some of the other U.S industries however in order for them to continue to see any type of growth it is important that they acknowledge their issues and find ways in which they can rectify them. The majority of the issues among the industry are problems that cannot be directly controlled by individual wine companies. Therefore it is imperative that wineries find away to use these issues to their advantage, since they are impossible to just ignore. The four most crucial obstacles the industry is currently faced with are the economic state, the climate changes, the price of gas, and the CARE Act of 2010. All four of these obstacles affect the production of wine and as an end results affect the consumer. These obstacles cause the cost of wine production to increase and therefore wine companies have to increase the price at which they sell their wine to consumers in order to offset the extra money that was put in to the manufacturing of the good. The industry should also focus on their weaknesses amount the five forces, which include threat of substitutes, threat of entry, and threat of rivalry. If the industry can focus on lowering these threats, and concentrate on the value of their customers then they will be able to face the issues that they cannot control with a stronger hold on the market.…

    • 4543 Words
    • 19 Pages
    Powerful Essays