Chile wine

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

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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

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