Global Wine War 2009 Case Study
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Table of Content Preface 1 1. Introduction 3 2. Case analysis 3 In the beginning 3 Political influence in the Old World 3 A New World was born 4 Global Wine War 4 The battle of the US market 4 3. Theory & application to the case 5 Porter Outside-In Model 5 Porter Outside-In model & the Global Wine War 6 The Resource Based View Inside-Out Model 6 The Resource Based View Inside-Out Model & the Global Wine War 7 Innovations 7 Red Queen competition 7 4. Conclusion 8 References 9
This case paper found its origins in the wine war which started between The Old wine world and the New wine world. The Old world existed out of countries In Europe and Eastern Europe that had already been making wine for many years, for example: Italy and France. The new world, all countries located …show more content…
The threat of new entrants of the New World increased because a gap existed due to the consequences of this phylloxera.
The threat of rivalry increased because new players entered the wine market. The New World producers could produce and sell wine cheaper and were able to respond to consumer demands better than the Old World producers because of innovations, and less rules and regulations compared to the Old World.
Due to the preference of the new generations in the Old World the total amount of wine consumed per capita declined drastically. These changes were due to changed preferences for substitutes like beer and liquor.
The threat of powerful suppliers was high in the Old World. The New World controlled the total value chain therefore they did not have the threat of powerful suppliers. The Old World did not control the whole value chain, therefore they were dependent on their suppliers.
Due to the increase in suppliers of wine there are more varieties of wine available. This means that buyers have more power when purchasing …show more content…
The decision of the French to launch products under AOC and VDQS could have been something they should have done earlier. As the ‘red queen competition’ means that firms in a competitive market should keep on adapting to market changes, they could have tried to keep up with the New World competitors in order to ensure their position in the market.
Barney, J (March 1991), “Firm Resources and Sustained competitive advantage”, Journal of Management
Barnett, WP; Hansen, MT (2007) “Red Queen in organizational evolution”, Strategic Management Journal
Case 2-1 Global Wine War 2009: New World versus Old
International Business Strategy, Alain Verbeke
K.J. McCarthy; lecture notes; lecture 6: Perspectives on firm competitiveness and industry analysis.
Porter, ME (1991), “Towards a dynamic theory of strategy”, Strategic Management Journal
Resource-Based theory, Barney, JB; Clark,