Gradually the industry started modernizing all its processes and using fermentation and refrigeration for producing better quality products. As of now European market comprises of the majority of wine consumers, with other regions gradually joining in. Therefore the industry is indeed an attractive one, but the growing rivalry amongst the competitors has resulted in reduced margins for the industry. In addition threat of substitutes like other soft beverages has always kept the wine industry on the lookout for upgrading their own standards and quality. Some of the major wine producers are Constellation Brands, Inc. E. & J. Gallo Winery, Janton, Pernod Ricard etc. On account of increasing competition some consolidation is also taking place in the industry, with mergers and acquisitions. But the kind of competition amongst the large number of producers can be gauged from the fact that none of the major producers can boast of a market share of 2%. Observing the wine production figures since 1994 and projecting an estimate for the next five years till 2005, Morgan Stanley figured out that there could a marked decrease in the production levels in some countries, particularly after 2000, but this is more because of the increasing competition, which again is a pointer towards the attraction of the industry. Wine brings cheers to the consumers and has survived many adverse circumstances. But today the industry has made itself resilient enough towards such circumstances and facing them boldly.
Q-2: What is the basis for competitive advantage
Ans: Wine industry has in fact inherited some of the competitive strength in the form of its association with prestige and sharing happiness. In general the competitive advantage of wine industry is based upon the following facts;
Quality of wine is decided as per the climatic conditions, the land and the ambience, which gives it a unique identity.
Its shelf life is much more as compared to other drinks and beverages.
Wine is mostly used as a pleasure drink, with friends and colleagues. Therefore the consumption of wine in a group tends to become more.
Wine companies generally have a portfolio of products reflecting a wide variety of choices demanded by consumers in various style and price ranges. There are low-cost high volume varieties, premium varieties and ultra premium varieties.
The market is ever growing with the drink becoming quite fashionable amongst the youth.
Wine if taken in controlled quantity can have medicinal effects as well, therefore even doctors, other health professionals, NGOs too do not feel the need to be up in arms against the drink.
It has been observed that citizens above the age of 50 years consume more wine than the younger ones. And with the a sharp rise in the average age of an individual, thanks to the advancements in health care
In the paper “The Wine Industry Analysis” the author analyzes the history of production and consumption of wine. Tracking the trail of wine through the ages, popularity of wine kept increasing through the ages, despite some problems like the phylloxera epidemic of 1860s…
In the present context, the foreign relationship is termed to be quite vital in the Brazilian economy. This can be evidently witnessed, as the interactions of Brazil with other economies have improved largely from the previous years’ reducing the social and economical barriers.
The per capita wine consumption of Hong Kong legal drinkers is an average of 3.3 liters which is higher than Japan (2.3 liters) and Singapore (1.9 liters) (Suen, 2009). Hong Kong wine consumption is expected to reach 4.2 liters by 2012. Despite financial tsunami, the development of Hong Kong wine market has high growth potential.
The strategies and the rivalry prevailing among the wine producers in the Chilean wine markets are also important for analysing the Chilean wine industry. The level of competition in the Chilean wine industry in quite healthy in nature that has the objective of producing quality wine products for supplying to the customers in domestic and foreign markets.
All that will lead to the findings which will give an idea about the future of the UK wine industry and in which direction it is heading.
In this project it is hoped to analyze about the beginning, development and the future of the UK wine industry. The historical context of the UK wine industry will be analyzed in that the people and firms who decided to develop the wine industry in the UK will be focused upon.
France and Italy leads the production and consumption of wine globally but they have seen a steady decline of their market share along with other players such as the United Kingdom, United Stares, Australia and other European countries.
For many companies, including middle-size enterprises, international sales provide additional profits and are all that enable some companies to make any profits at all. Consumers worldwide are familiar with international brands and additionally are using locally produced goods
However, each year the market share of the Old World Wine is on a declining trend. xlii
Among the top five exporters (by value) of wine in UK market in 2004 the author observes that the New World wine producers
The will shift to another product that has the same benefits, uses or quality but they are offered at lower prices. Marketing, at an advanced stage includes the use of PEST analysis and the deep analysis of the many factors that uniquely affect the sales and expenses of a company as it operates it business.
The company initiated its “Initial Public Offering” in the year 1993 with the substantial investment in vineyard, land acquisition and working capital. Moreover, Robert Mondavi was succeeded by his son Michael Mondavi in
The author states that the competitive advantages of wine industry in Greece are evaluated using the famous Porter’s National Diamond framework which focuses on the key factors or determinants in the country that a new entrant in the industry can utilize for their production and establish their business.
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