An Analysis of New and Old World Wine Countries
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Outline
I. Executive Summary ...................................................................................................................... 3
II. Background................................................................................................................................. 4
III. Industry Analysis: Australia....................................................................................................5-7
A. Challenges ...................................................................................................................7-8
1. Public perceptions
2. Fragmentation of wineries
3. Overproduction
4. Climate
5. Trade regulations
6. Substitutes
7. Education
8. Piracy
B. Porter’s Five Forces...................................................................................................8-10
1. Comparative rivalry
2. Threats of new entrants
3. Bargaining power of buyers
4. Bargaining power of suppliers
5. Threat of substitutes
C. Recommendations ........................................................................................................ 10
IV. Industry Analysis: United States.............................................................................................. 11
A. Challenges ...............................................................................................................12-13
1. Market share
2. Cost of land and labor
3. Highly regulated
4. Fragmented market
5. Substitutes
B. Porter’s Five Forces.................................................................................................13-14
1. Comparative rivalry
2. Threats of new entrants
3. Bargaining power of buyers
4. Bargaining power of suppliers
5. Threat of substitutes
C. Recommendations ........................................................................................................ 15
V. Industry Analysis:
References: Ted Baseler, U.S. Wine Industry Challenges and Opportunities, Wine Business Monthly, December 15, 2005 William Echikson, Frederik Balfour, Kerry Capell, Linda Himelstein, and Gerry Khermouch, Wine War: Savvy New World marketers are devastating the French wine industry, BusinessWeek, September 3, 2001 Agustin Huneeus, Consolidation and the Future of Small, Premium Wineries, Wine Business Monthly, December 15, 2005 Christopher A. Bartlett, Global Wine War 2009: New World versus Old, Harvard Business School, August 13, 2009 Adelaide Data Monitor, Wine in Australia, May, 2010