Chile wine

Topics: Wine, Chile, Chilean wine Pages: 27 (5250 words) Published: November 24, 2014

 

Global
 &
 International
 Business
 Contexts
 –
 
SM0269
 
Competitiveness
 and
 Investment
 attractiveness
 of
 the
 
Chilean
 Wine
 Industry
 
 

 

 

 

 

Student number: w12016962
 

 
Law with International Business,
Year 2
Word count: 3297
Seminar tutor: Sanjay Bhowmick
Thursday: 14:00 to 16:00

TABLE OF CONTENTS

 

EXECUTIVE SUMMARY
 

3
 

LIST OF FIGURES
 

4
 

1 – INTRODUCTION
 

5
 

2 – THE APPLICATION OF THE PORTER’S NATIONAL DIAMOND ANALYSIS ON THE CHILEAN WINE INDUSTRY
 
6
 

 
2.1
 FACTOR
 CONDITIONS
 

 
2.2
 DEMAND
 CONDITIONS
 

 
2.3
 RELATED
 AND
 SUPPORTING
 INDUSTRIES
 

 
2.4
 FIRM
 STRUCTURE,
 STRATEGY
 AND
 RIVALRY
 

 
2.5
 ROLE
 OF
 CHANCE
 

 
2.6
 ROLE
 OF
 GOVERNMENT
 

6
 
8
 
10
 
12
 
13
 
13
 

15
 

3 – MARKET-ENTRY STRATEGY
 

 
3.1
 COMPANY
 ACQUISITION
 

 
3.2
 JOINT
 VENTURE
 

15
 
16
 

4 – APPENDICES
 

18
 

5 – REFERENCES
 

20
 

 

 

 

[Tapez
 le
 texte]
 

 

 

GLOBAL
 &
 INTERNATIONAL
 BUSINESS
 CONTEXTS
 –
 SM0269
  3
 

 

EXECUTIVE SUMMARY

This report provides an analysis of the overall competitiveness and investment attractiveness of the Chilean wine industry. It also identifies two possible market entry strategies and discusses the advantages and limitations of each. Methods of analysis include: Porter’s National Diamond Analysis and PESTEL analysis.

Supporting documents can be found in the appendices.
The research draws attention to the ideal economic, geographic and climatic conditions that Chile possesses to develop high quality wine. Further investigations reveal that there was an increase in the level of consumption of the Chilean wine due to the increasing level of quality expressed in the international award received by Chilean firms and finally that the wine industry is well supported by the government. The report finds the prospects of establishing a wine production business in Chile positive. However, some elements such as the market-entry strategies require further investigations in order to analyse precisely the financial conditions of the potential local partners.

Market-entry strategies recommendations discussed include:
-­‐

Foreign Acquisition

-­‐

Joint Venture

 

 

 

 

 W12016962

 

 

LIST OF FIGURES

 
Figure 1. Porters National Diamond Model.
Figure 2. Map of Chilean wine country.
Figure 3. Global consumption of wine, trends 2000-2012 (unit: 1000hl). Figure 4. Global wine consumption between 1996 and 2013.
Figure 5. Chilean wine cluster.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Tapez
 le
 texte]
 

 

 

GLOBAL
 &
 INTERNATIONAL
 BUSINESS
 CONTEXTS
 –
 SM0269
  5
 

 

1 – INTRODUCTION

Viticulture has been established in Chile since the 16th century and is the result of the Spanish colonization. Today, Chile is the 5th largest wine exporter in the World, holding 8% of the world's wine market share (Wine Institute, 2013). The industry is composed of approximately 13,946 vineyards and 300 local wineries (CORFO, 2010) primarily situated in the Central Valley, a plateau, bound by two mountain ranges and bisected by the rivers Maipo, Maule and Aconcagua.

The Chilean wine industry produces a wide selection of wine including Cabernet, Sauvignon, Merlot and Chardonnay. The first aim of this report is to evaluate the overall competitiveness and investment opportunity of this industry in order to advise the multinational...

References: •
Spawton, Tony (1990)
Benavente, J. (2004). Technological change in Chile 's grape and wine
producing industry
Reader. London: Thomson, 2002.

Phil Bretherton, Peter Carswell, (2001) "Market Entry Strategies for Western
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