MARKETING MANAGEMENT CASE REPORT: Global Wine Wars: New World Challenges Old (Harvard Business School Case # 9-303-056) NMI 1. How did the French become the dominant competitors in the increasingly global wine industry for centuries? What sources of competitive advantage were they able to develop to support their exports? Where were they vulnerable? French wine makers also face challenges that are not internal to the industry. For instance‚ France lost market share in the United States due to
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Global Wine Wars 2009: New World versus Old World Executive Summary The concept of wine-making was originally an art dominated by several European countries‚ mainly amongst the noble class‚ competing against one another for the highest quality wines. Traditionally set in their ways‚ from their methods of planting‚ to harvesting‚ to marketing channels and their consumers‚ the “Old World” wine-makers were unprepared for what was ahead of them as the “New World” growers joined in the struggle
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Global Wine Wars 2009: Old versus New World 1. The wine industry thrived in the Christian era due to reasons of dynastical prestige and competition for luxury. Europeans had planted vines to produce wines of different qualities. Production of wine gained momentum with the introduction of wine processing plants in France. France became the leading producer of quality wines due to the favorable conditions that they had experienced within the country. High wine production in France continued for several
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Global Wine Wars In the beginning Grape growing and wine making have been human preoccupations at least since the times when ancient Egyptians and Greeks offered wine as tributes to dead pharaohs and tempestuous gods. It was under the Roman Empire that viticulture spread throughout the Mediterranean region‚ and almost every town had its local vineyards and wine was a peasant’s beverage to accompany everyday meals. By the Christian era‚ wine became part of liturgical services‚ and monasteries
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Champaign. The experience of France as a quality wine producer going back to the middle ages can be regarded as a source of competitive advantage. Another source is the strong wine culture in France creating a positive image for customers. The wine industry by itself is a very important economic factor in France‚ in the mid 18th century the wine industry accounted for 17% of the overall industry. As a consequence‚ in 1855 the government classified wine yard into five different levels of quality. This
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possible acquisition of Goundrey Wines‚ Australia as part of the strategic internationalization plan developed in 2000 felt they had to look beyond region to be a major competitor biggest wine company in Canada‚ 4th largest in North America first time they try to be international‚ first experience Global Wine Industry new world: U.S.‚ Australia‚ Chile‚ Argentina old world: France‚ Italy‚ Spain Australia leader of new world wine exporting Top 10 wine exporters accounted for 90% of total
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Global Wine War 2009 : New World versus Old How were the French able to dominate the worldwide wine trade for centuries ? What sources of competitive advantage did they develop to support their exports ? France and the Mediterranean region is closely tied to the Wine History. It has started since the Roman Empire‚ and has been fully integrated to the European culture with the Christian era : Monasteries planted vines and built wineries. The nobility started also planting vineyards as a mark of
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Global Wine War 2009: New World versus Old 1. How were the French able to dominate the worldwide wine trade for centuries? What sources of competitive advantage did they develop to support their exports? The French wine production essentially dates back to the time when it was part of the pioneering niche market for high quality premium wine. The factor conditions such as land and climate were pertinent attributes of the France‚ compared to other European countries. Cross
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the global wine market was experiencing a revolution and the competition between the Old World and New World was changing extensively. Many corporations of wine producers form the Old World‚ for example‚ France and Italy‚ etc. found that themselves constrained by restrictive industry regulations‚ embedded practices and traditions‚ and complex legislation‚ and these restrictions of the Old World wine produces provided many opportunities for these wine corporations from Australia to challenge for the
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BARTLETT Global Wine War 2009: New World versus Old “We have the people‚ expertise‚ technology and commitment to gain global preeminence for Australian wine by 2025. It will come by anticipating the market‚ influencing consumer demand‚ and building on our strategy of sustainable growth.” — Sam Toley‚ CEO of Australian Wine and Brandy Corporation. “By phasing out the buyback of excess wine and increasing incentives for farmers to uproot their vines‚ the EC reforms will only bring in the New World’s
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