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Wine Business
INNOVATION STRATEGY IN A GLOBALIZING INDUSTRY:
A CASE STUDY OF THE WINE INDUSTRY
By
Orlando-Marian Voica

THESIS

Submitted to
School of Public Policy and Management, KDI in partial fulfillment of the requirements for the degree of
MASTER OF BUSINESS ADMINISTRATION

2002

INNOVATION STRATEGY IN A GLOBALIZING INDUSTRY:
A CASE STUDY OF THE WINE INDUSTRY

By

Orlando-Marian Voica

THESIS

Submitted to
School of Public Policy and Management, KDI in partial fulfillment of the requirements for the degree of
MASTER OF BUSINESS ADMINISTRATION

2002

Professor Seung-Joo Lee

ABSTRACT

INNOVATION STRATEGY IN A GLOBALIZING INDUSTRY:
A CASE STUDY OF THE WINE INDUSTRY
By
Orlando Marian Voica

In this thesis we develop through various case studies a wine industry analysis in the globalization context by deeply focusing on the role of strategic innovation of non-traditional players in reshaping this industry. Since the inception of globalization, innovation supported the increase in the global consumption and production of wine, and helped the New World winemakers seize various market opportunities. Globalization has provided not only an excellent support for the development of the wine industry, but also has stimulated its consolidation. In this particular context, innovation supported the New World winemakers to obtain the pole position and maintain the leadership in the global wine industry’s development and consolidation. Our analysis shows how innovation expanded the market for wine, led to an increase in the quality of wines and the creation of consistent brands, and generated an overall positive effect on wine companies’ operational and financial results. In this respect, this thesis provides a high level analysis that establishes innovation strategies as the main factor of the wine industry development in the 21st century.

ACKNOWLEDGEMENTS

I am thankful to a number of individuals who committed their valuable


References: Arnold, James. "New World wins the wine war,” Business in BBC News, June 21, 2001. Balfour, Frederik and others. “Wine War – Savvy New World marketers are devastating the French wine industry,” Business Week (September 3, 2001). BRL Hardy Ltd. “Chairman’s address,” 2001- Annual General Meeting, April 3, 2001. BRL Hardy Ltd. “BRL Hardy & Constellation Brands Joint Venture,” Press Release, June 12, 2001. BRL Hardy Ltd. “BRL Hardy breaks into China Wine Market,” Press Release, June 13, 2002. BRL Hardy Ltd. “Major USA Acquisition Accelerates BRL Hardy 's Expansion Plans,” Press Release, October 1, 2001. Management Journal, Vol.19. No.4 (Aug 2001): pp. 424-429. (2001): pp. 853-854. (September 3, 2001). “French Wine Industry Losing Global Market Share to New World Producers,” Food and Drink Weekly, August 20, 2001. 60 “Foreign lagers the world over,” Euromonitor International (July 10, 2002). Constantinos. MIT Sloan Management Review, 2001. Kim, W. Chan and Renee Mauborgne, “Creating new market space,” Harvard Business Review (Jan.-Feb.1999): pp.83-93. Economy.ed.Cusumano, Michael A. and Markides, Constantinos. MIT Sloan Management Review, 2001. Mondavi, R. Michael “Goldman Sachs Global Consumer Products Conference,” Reynella, May, 2002. (March 1999). Perdue, Lewis. The Wrath of Grapes. New York: Avon Books Inc, 1999. Porter, Michael E. and Gregory C. Bond. “Robert Mondavi: Competitive Strategy,” Harvard Business School Case study 9-799-125, June 16, 2000.
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