What changes in global industry and competitive dynamics led france and traditional producers to lose market share to challengers from Autrala, United States, and other New World countries in the late twentieth century?
All over the ages, European countries were alone on the world wine market. They have a great heritage in production and are known and appreciated in all countries. They tried to exportat their products but they had faced problems ( like transportation which is extremely expensive and wine that don’t travel well). Also, producers tried to find solutions like new packages (glass bottles in the 18th century and early the 19th) but this was done outside a competition point of view. Unfortunately, the solutions found was not very elaborated and did not allow French wine to be largely spread in the foreign countries. They did not though that this non-satisfied demand in international countries would lead them in a “wine war”.
Complex national and European Community legislations (taxes on exportations, little possibility to transform the wine and to create new excisting products around it, high cost of roduction...) added to the transportation problems did not allow French producers to satisfy the needs allover the world. Therefore, some countries began producing their own wine and also developed new processus and new technologies to produce, transport and market their product. Until today, United States, Australia, Chile and other countries manage to reach good ranking in sales and good reputation of their products. Their creativity, innovations and lower prices permit these “New world” producers to follow the demand and understand the new young generations’ and new wine-drinker-countries’ demand. During this time, countries such are France was struggling with legislation and continued to think people prefer French wine because of it’s quality and it’s long tradition. They just looked at the decreasing consumption of “classic”, “everyday...
Please join StudyMode to read the full document