The Global Wine War - 9914 Words

9-910-405 AUGUST 13, 2009 CHRISTOPHER A. BARTLETT â€Å"We have the people, expertise, technology and commitment to gain global preeminence for Australian wine by 2025. It will come by anticipating the market, influencing consumer demand, and building on our strategy of sustainable growth.† — Sam Toley, CEO of Australian Wine and Brandy Corporation. â€Å"By phasing out the buyback of excess wine and increasing incentives for farmers to uproot their vines, the EC reforms will only bring in the New World’s agro-industry model. We need to protect the age-old European model built on traditional vineyards.† — Jean-Louis Piton, Copa-Cogeca Farmers Association. In 2009, these two views reflected some of the very different sentiments unleashed by†¦show more content†¦During the French Revolution, many large estates were seized, divided, and sold at auction. And after 1815, the Napoleonic inheritance code prescribed how land had to be passed on to all rightful heirs. By the mid-19th century, the a verage holding in France was 5.5 ha. and was still being subdivided. (In Italy, similar events left the average vineyard at 0.8 ha.) While the largest estates made their own wine, most small farmers sold their grapes to the local wine maker or vintner. With payment based on weight, there was little incentive to pursue quality by reducing yield. Some small growers formed cooperatives, hoping to participate in wine making’s downstream profit, but grape growing and wine making remained highly fragmented. Distribution and Marketing Traditionally, wine was sold in bulk to merchant traders—nà ©gociants in France—who often blended and bottled the product before distributing it. But poor roads and complex toll and tax systems made cross-border shipping extremely expensive. In the early 19th century, for example, a shipment of wine from Strasbourg to the Dutch border had to pass through 31 toll stations.2 And since wine did not travel well, much of it spoiled on the long journeys. As a result, only the most sophisticated nà ©gociants could handle exports, and only the rich could afford the imported luxury. Late 18th century innovations suchShow MoreRelatedGlobal Wine Wars1177 Words   |  5 PagesMarket Analysis: Global Wine Wars-New World Challenges Old Global Wine Wars: New World Challenges Old   This case describes the global development of wine industry, and how new world wine players occupied the global market share from old world wine producer gradually. It is very interesting that author selected the Britain as the sample stage for the battle between the new world wine campaign and the traditional campaign.   Nowadays, in the â€Å"Old World† countries of Europe, where the bulk of theRead MoreGlobal Wine War2166 Words   |  9 PagesCASE: 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. In the following, we will analyze briefly the main points of this evolution and group those points into several categories. Change on the demand side † DemandRead MoreGlobal Wine Wars1203 Words   |  5 PagesADVANCED MARKETING MANAGEMENT CASE REPORT: Global Wine Wars: New World Challenges Old (Harvard Business School Case # 9-303-056) NMI 1. How did the French become the dominant competitors in the increasingly global wine industry for centuries? What sources of competitive advantage were they able to develop to support their exports? Where were they vulnerable? French wine makers also face challenges that are not internal to the industry. For instance, France lost market share in the UnitedRead MoreGlobal Wine War2088 Words   |  9 PagesGlobal 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 2009: New Word versus Old these are; France, Italy, Spain and Greece. Here the wine culture was developed mainly due to the habits of religion and high society which caused them to have the highest consumption per capita in the world, creating a very attractive andRead MoreGlobal Wine War6128 Words   |  25 PagesIntroduction Human beings have been dealing with wine for thousands of years, from the Mesopotamians to the ancient Egyptians, from the Greeks to the ancient Romans, the latter which under their vast empire spread viticulture through the Mediterranean region. Through centuries countries, such as France and Italy, obtained a consolidated position in the wine industry, both in demand and production. In the last part of the 20th century newcomers (Australia, South Africa, NewRead MoreGlobal Wine War 20091298 Words   |  6 PagesGlobal Wine War 2009 : New World versus Old How were the French able to dominate the worldwide wine trade for centuries ? What sources of competitive advantage did they develop to support their exports ? France and the Mediterranean region is closely tied to the Wine History. It has started since the Roman Empire, and has been fully integrated to the European culture with the Christian era : Monasteries planted vines and built wineries. The nobility started also planting vineyards as a mark ofRead MoreGlobal Wine Wars1815 Words   |  8 Pagesincreasingly global wine industry for centuries? What sources of competitive advantage were they able to develop to support their exports? Where were they vulnerable? â€Å"By the Christian era, wine became part of the liturgical services, and monasteries planted vines and built wineries. By the Middle Ages, the European nobility began planting vineyards as a mark of prestige, competing with one another in the quality of wine served at their tables – the first niche market for premium wine.† The FrenchRead MoreGlobal Wine Wars1857 Words   |  8 Pagesthe global wine industry due to the low effect of the five forces of competition. The main barriers to entry that kept the threat of competitors low for the French were incumbency advantages, unequal access to distribution channels and restrictive government policies. This first barrier, incumbency advantages, can be explained by the domestic French Wine Industry in the late 18th to mid 19th century that was already supporting 1.5 million families for both the growing of grapes and other wine-relatedRead MoreGlobal Wine Wars Essay2235 Words   |  9 Pages1. Briefly describe the chang ing economic geography of the global wine industry in terms of production, distribution and consumption. The Global wine industry has undergone a monumental change in terms consumer demand and more importantly in the ways it is produced and sold. The consumption, distribution and production has migrated away from the restrictions and regulations of the Old World to the New World ways of smart marketing, branding and serving to customers preferences. Middle agesRead MoreGlobal Wine War Analysis1010 Words   |  5 PagesChampaign. The experience of France as a quality wine producer going back to the middle ages can be regarded as a source of competitive advantage. Another source is the strong wine culture in France creating a positive image for customers. The wine industry by itself is a very important economic factor in France, in the mid 18th century the wine industry accounted for 17% of the overall industry. As a consequence, in 1855 the government classified wine yard into five different levels of quality. This