Global and International Business Contexts – SM0269

W13012208

Jack Goddard

Word Count: 3457

Table of Contents

Introduction 3
Part 1: Porter's National Diamond Analysis 3
Part 2: Contemporary Management Issues 7
Part 3: Market Entry Strategy 11
Recommendation to the Board of Directors…………… ……………………………… ….13
Appendices 14
References 15

Introduction

This report has been written by the Boston Consulting Group and uses Porter’s national diamond analysis model to evaluate the attractiveness of investment opportunities in the Tunisian wine industry. Also discussed are two key management issues that need to be taken into account before developing operations in Tunisia followed by recommendations on two strategies for entry into the Tunisian wine industry market.

In terms of background to this report, it should be noted that the global market for wine industry is changing significantly with substantial differences in the structure of the wine industry around the world. For instance, there are 232,900 wine producers in France but the top 10 brands control only 4% of the market. In contrast, four firms control over 75% of the Australian wine market. Hence there is a marked difference in industry structure when comparing the “New World” producers (e.g. Australia, Chile, United States) to the “Old World” firms. These structural differences are driven by institutional diversity and contrasting patterns of historical development in countries. However, they are also driven by the competitive strategies employed by particular firms which are determining factors discussed in Porter’s Diamond model.

Porter's diamond model allows an analysis of why some industries within nations are more competitive than others and takes into account the home base