Global Wine War 2009: New World versus Old. Group 2 Raffaella Angelico Andrea Batticani Eleonora Ganucci Chiara Nardelli Federica Strazzeri Matthias Trenkwalder. What is interesting about the case?.
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“Companies approach INNOVATION in its broadest sense, including both new technologies and new ways of doing things. They perceive a new basis for competing in old ways”.
CAGR = 2%
CAGR = 2%
Source: DataMonitor 360°
A changing market…
World Wine Production:
facts and trends
World’s wine production by country 2009
Percentage change by country (2006-2009):
South Africa: -16,93%
Source: Wine Institute California, www.wineinstitute.org, World Wine Production by Country
2010: The U.S. surpassed France as the world's largest wine-consuming nation!
World’s wine consumption by country (in liters 2006/2009)
Source: Wine Institute California, www.wineinstitute.org, World Wine Consumption by Country
The new world wine producers are present in the Basic- and in every Premium- Segment but it’s hard for them to sell Icon Wines. This segment is still dominated by the old world producers.
Source: DataMonitor 360°
“In a world of increasingly global competition, nations have become more, not less, important.” (Porter, 1990)
“Each point on the diamond – and the diamond as a system – affects essential ingredients for achieving international competitive success.”
“The nation's position in factors of production, such as skilled labour or infrastructure, necessary to compete in a given industry.”
“The nature of home-market demand for the industry's product or service.”
New World companies:
Control the entire value chain (including distribution channels)
Closer to consumers than OW who don't own distribution channels.
NW wine producers have a better understanding of home market's preferences & are more inclined to adapt to changes in demand than OW wine producers.
“The conditions in the nation governing how companies are created, organized, and managed, as well as the nature of domestic rivalry.”
“The presence or absence in the nation of supplier industries and other related industries that are internationally competitive.”
One of the most important characteristics of the wine industry is that it stimulates the formation of clusters.
The wine production process can be carried out only in some particular regions were the resources are available.
“Clusters represents a new way of thinking about location, challenging much of the conventional wisdom about how companies should be configured, how institutions can contribute to competitive success, and how government can promote economic development and prosperity.”(Porter 1998)
Clusters can enhance competition in three different ways:
-600 wineries & canteens
-34000 ha of vineyards
- Several universities involved in grape and wine researches
- Technological school specialized in viticulture and enology
- IBRAVIM Vision 2025.
Source : J.E. Fensterseifer “ THE EMERGING BRAZILIAN WINE INDUSTRY: CHALLENGES AND PROSPECTS FOR THE SERRA GAÚCHA WINE CLUSTER” 2006