Wine Business

Topics: Wine, Terroir, Winemaking Pages: 70 (15740 words) Published: October 21, 2014
INNOVATION STRATEGY IN A GLOBALIZING INDUSTRY:
A CASE STUDY OF THE WINE INDUSTRY
By
Orlando-Marian Voica

THESIS

Submitted to
School of Public Policy and Management, KDI
in partial fulfillment of the requirements
for the degree of
MASTER OF BUSINESS ADMINISTRATION

2002

INNOVATION STRATEGY IN A GLOBALIZING INDUSTRY:
A CASE STUDY OF THE WINE INDUSTRY

By

Orlando-Marian Voica

THESIS

Submitted to
School of Public Policy and Management, KDI
in partial fulfillment of the requirements
for the degree of
MASTER OF BUSINESS ADMINISTRATION

2002

Professor Seung-Joo Lee

ABSTRACT

INNOVATION STRATEGY IN A GLOBALIZING INDUSTRY:
A CASE STUDY OF THE WINE INDUSTRY
By
Orlando Marian Voica

In this thesis we develop through various case studies a wine industry analysis in the globalization context by deeply focusing on the role of strategic innovation of non-traditional players in reshaping this industry. Since the inception of globalization, innovation supported the increase in the global consumption and production of wine, and helped the New World winemakers seize various market opportunities. Globalization has provided not only an excellent support for the development of the wine industry, but also has stimulated its consolidation. In this particular context, innovation supported the New World winemakers to obtain the pole position and maintain the leadership in the global wine industry’s development and consolidation. Our analysis shows how innovation expanded the market for wine, led to an increase in the quality of wines and the creation of consistent brands, and generated an overall positive effect on wine companies’ operational and financial results. In this respect, this thesis provides a high level analysis that establishes innovation strategies as the main factor of the wine industry development in the 21st century.

ACKNOWLEDGEMENTS

I am thankful to a number of individuals who committed their valuable time and knowledge toward the completion of this thesis. My deepest gratitude and appreciation goes to my advisor, Professor Seung-Joo Lee, whose understanding and tactful nature has helped to nurture and develop this thesis. He set forth the research path on the innovation strategy in the wine industry, and his valuable knowledge helped me acquire a deep understanding of the phenomena that underline this concept.

I would also like to extend my sincere appreciations to many other persons that encouraged and advised me during my studies at KDI School. The School’s staff and faculty have given me help and comfort not only throughout my academic endeavors, but also in many other problems. The kindness and thoughtfulness of the people from the Academic Affairs, External Relations or Knowledge Cooperation Center made me feel myself among friends. Special thanks, also, to the Romanian crew here in Korea, who were always helpful through their personal experience, professional knowledge and consistent reliability provided in times of need. Last, but not least, I have to thank my loving family and all people that have supported and have educated me.

TABLE OF CONTENTS

I. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 1.1 BACKGROUND AND OBJECTIVE OF RESEARCH . . . . . . . . . . . . 1 1.2 RESEARCH METHODOLOGY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 1.3 STRUCTURE OF THE THESIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 II. OVERVIEW OF THE WINE INDUSTRY . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2.1. STRUCTURE AND ECONOMICS OF THE WINE INDUSTRY . . . 7

2.1.1 Wine Industry Competitiveness Analysis . . . . . . . . . . . . . . . 7 a) Vineyard’s Competitiveness Analysis . . . . . . . . . . . . . . . . . 7 b) Winery’s Competitiveness Analysis . . . . . . . . . . . . . . . . . . 10 2.1.2 Economic Analysis of the Wine Industry . . . . . . . . . . . . . . . 13 a) The Vineyard’s...


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