And the government Global wine war case 2009 essay provide more funds to distill surplus wine into industrial alcohol. Consequently, the export business should focus on full-bodied, quality wines that can raise its image. In addition, they should control their distribution chain to capture more economic advantage.
The main factors determined the French to become the dominant competitors in the increasingly global wine industry for centuries include: These experiments provided valuable lessons in branding and marketing.
Advice to the Wine Producers Australian wine was also facing price and image problems, its bumper crops of had led Australian producers to aggressively reduce prices in all export markets. There was also some evidence that New World wines were developing image problems born of their willingness to lower prices aggressively in an era of excess supply.
New World Versus Old, and gave some advice to the both sides in the fierce battle according to the analysis. The economic impact of these innovations largely decreased the production costs of the New World comparing with the Old. Increasing Distribution Power of New World The significant changes of demand trends in global wine markets had great impact on the distribution chain of wine industry.
This shift in market demand escalated the competition for export sales into a global wine war. They developed collapsible plastic bag and replaced cork stoppers with screw caps to reduce shipping costs, to save storage space and to avoid the defect of corks. Maturing Global Markets and Changing Global Demand Patterns A declining demand in worldwide consumption occurred from toespecially in the highest-consumption countries, such as France and Italy, and countries with drinking cultures, such as Spain.
In spite of the size and reputation of the wine production of Old World countries made themselves the dominant competitors in the increasingly global Global wine war case 2009 essay industry for centuries, they constrained by their wine-making traditions, restrictive industry regulations and complex national and European Community legislation, New World is catching up with them tightly, and a fierce battle has been fighting between Old World and New World.
Historically, only the handful of Old World producers whose wines achieved icon status were recognized brands, and these brands appealed to the elite, who represented only a tiny fraction of the global market.
After thousand-year development, innovations revolutionized the industry. Innovation of viniculture such as night harvesting, trellis systems, fertilizers and pruning methods pursued to increase yield and grape flavor.
In addition, with the innovations of wine storage and delivery technologies, greater wine stability and longevity, distribution to distant markets and bottle aging of good vintages is also helped countries of Old World to expand production and export to the global market.
Furthermore, climate and soil allowed grape growing to flourish in the New World, the consumption of wine in these countries varied widely. Strict and recognized laws and regulations to control almost every aspect of winemaking to ensure the quality of wine and to help consumers identify their finest wines.
New World In spite of the swings in fashion posed a problem for growers, New World wine regions had the capacity and the regulatory freedom to plant new varieties in new vineyards and could respond. Natural and economic factors caused an increase in production cost, so the producers should improve their efficiency further to reduce the production costs despite their achieved high efficiency of production.
New World New World producers had made branding a routine part of wine marketing. Furthermore, Australian wine could not compete long-term in a low-cost battle. Advice to the Wine Producers Since the demand of consumers has changed significantly, the producers should have sufficient understanding of the fast-changing consumer tastes, market trends and the rapidly concentrating retail channels.
The Emerging New World Under the influence of immigrants from the Old World wine countries, wine industries in Argentina, Chile and South Africa have developed rapidly since 18th century.
These changes brought more profits, more recognition of consumers, more market share and more marketing experience to New World companies. Changed Marketing Model In addition to the innovations of grape growing and winemaking, New World also innovated in packaging and marketing.
Size also gave New World companies bargaining power in the sophisticated negotiations that a concentrated retail sector now demanded. Following the development of economy, demand for higher-quality wines became a worldwide trend in wine industry.
They would have said France, Italy or Spain.
Challenges to New World In spite of the success achieved in the competition with Old World, New World wine companies were also facing challenges. They learned the value of differentiating their products and making them more appealing to palates unaccustomed to wine.
Meanwhile, with the shift to quality, a greater fashion element began to influence demand, and the demand for different grape varieties also moved with fashion. New World Because most large New World wine companies controlled their distribution chain from the vineyard to the retailer, they were able to sense changes in consumer preferences and respond to shifts in distribution channels.
Advantages of Positioning and Branding Appropriate positioning and recognized brand are the key factors for wine producers to appeal to consumers and to increase their market share. They built their marketing expertise in their home markets, learned how to respond to consumer preferences for the simpler.
Innovations and Broken Traditions New World producers broke many grape growing and winemaking traditions, including: They then took those wines and the marketing and branding skills they had developed at home into the export markets.
The large New World companies typically controlled the full value chain, extracting margins at every level and retaining bargaining power with increasingly concentrated retailers.Global Wine War Words | 9 Pages.
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 New Word versus Old" these are; France, Italy, Spain and Greece.
CASE REPORT: Global Wine Wars: New World Challenges Old (Harvard Business School Case # ) NMI the most desirable export target in due to its large, fast-growing, high priced market segments.
Essay on Global History Cold War Thaws. Global Wine War CASE: GLOBAL WINE WARS (A) Question 1 During the last decades, some remarkable evolutions of the global wine industry have dramatically influenced the base of the industry structure, with technological update, innovation, and new players coming in, the wine market as well as the competition within this market have come to a new dimension.
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A Case Study on ‘Global Wine Industry’ this case.
• Threat of Entry from New Competitors a. The essay also mentions some questionable things about what the colonists do at the end of the war with how they. With its cost advantages, and in pursuit of market leaders, it may put more promotion by emphasizing its wine in "high quality, but at a lower price".
In order to compete with the New World in high-ended wine market, the Old World countries should focus on product differentiation. Global Wine War Fix - Free download as Powerpoint Presentation .ppt /.pptx), PDF File .pdf), Text File .txt) or view presentation slides online.5/5(5).Download