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A Report in to the Tunisian Wine Industry

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A Report in to the Tunisian wine industry Introduction
This report will focus on the attractiveness of the Tunisian wine industry, and will determine whether the country is a suitable investment option, using Porters national diamond to analyse certain determinant factors. These include: Factor conditions, demand conditions, supporting industries, rivalry, structure and culture, chance and the impact of the government as seen in figure 1.Porter argues that the competitive advantage of certain industries in different nations depends upon four main aspects which form the diamond (Peng, 2014). The report will also consider contemporary management issues and suggest a mode of entry.

Figure 1 Porters national diamond
Tunisia is a country located in Northern Africa, bordering Libya and Algeria. It has a mixed economic system, with some private freedom along with a centrally planned economy, including some strict government regulation. Tunisia is a member of the African Union (AU) and Council of Arab Economic Unity (CAEU) (Global Edge, 2014). It also has close trading relations with Europe. Key exports include mechanical and electrical industries, textiles and apparel, food products, petroleum products, chemicals, and phosphates. Almost 70% of Tunisia’s exports go to the European Union (US Commercial Service, 2014).
Part one: Porters national diamond (Extended version)
Factor conditions:

According to standard economic theory, factors of production – Labour, Land, natural resources, capital, and infrastructure – will determine the flow of trade (Porter, 1990 p77). Tunisia has a highly literate labour force of approximately 3.4 million (US Commercial service, 2014). In addition, 16.2 % of total employment was in the agriculture sector. This means that there will be a highly skilled labour force readily available.

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