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Inter-firm Co-operation as a Business Strategy in the Wine Industry

Inter-firm Co-operation as a Business Strategy in the Wine Industry. Leo Paul DANA. In New Zealand. A local wine producer “Montana” was competing with international liquor manufacturer “Seagram” in a beer nation Were they competitors? Could they co-operate? Should they?

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Inter-firm Co-operation as a Business Strategy in the Wine Industry

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  1. Inter-firm Co-operation as a Business Strategy in the Wine Industry Leo Paul DANA

  2. In New Zealand • A local wine producer “Montana” was competing with international liquor manufacturer “Seagram” in a beer nation • Were they competitors? Could they co-operate? Should they? • How to succeed like Cadbury’s, Number 1 advertiser in NZ?

  3. Inter-Cadbury Co-operation • England: Cadbury • NZ: Hudson • India: Hindustani with apricot kernels • Canada: Cadbury subsidiary • USA: Hershey, a failure for Cadbury • Lesson: Both must be winners to be motivated and this takes more than money

  4. Trend: large firms co-operate • Air New Zealand is a member of Star Alliance, AC, LH, SK, TG, UA • QF is a member of Oneworld, AA, BA (BEA+BOAC) • Nearby in Tahiti we see AF is member of Skyteam, with DL

  5. In Closing • US per capita consumption of hard liquor dropping • Seagram had distribution channels • Perfect marriage for Montana wine to penetrate US market • Large-small firm co-operation

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