...9-910-405 AUGUST 13, 2009 CHRISTOPHER A. 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 agro-industry model. We need to protect the age-old European model built on traditional vineyards.” — Jean-Louis Piton, Copa-Cogeca Farmers Association. In 2009, these two views reflected some of the very different sentiments unleashed by the fierce competitive battle raging between traditional wine makers and some new industry players as they fought for a share of the $230 billion global wine market. Many Old World wine producers—France, Italy, and Spain, for example—found themselves constrained by embedded wine-making traditions, restrictive industry regulations, and complex national and European Community legislation. This provided an opportunity for New World wine companies—from Australia, the United States, and Chile, for instance—to challenge the more established Old World producers by introducing innovations at every stage of the value chain. In the Beginning1 Grape growing and wine making have been human preoccupations at least since...
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...ways such an economically and politically. Global perspectives- 1) Uganda- A project planned, which is now in action, to benefit everyone by reforesting the Mount Elgon national park because of the increase in carbon dioxide. The trees were breathing most of the carbon dioxide which made the travelers feel good and the people of Uganda had a larger park. The carbon gas increases global warming which is not beneficial for anyone. Efforts at capturing carbon were not successful for most of the countries and created a difference between the rich and poor countries....
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...Global Wine Wars Global Wine Wars case study is about the background, production and how New World Wine producing nations overtook Old World Wine producing nations. SWOT analysis of US Wine Market from point of view of the Australian Wine Industry. SWOT ANALYSIS Strengths: * Wine-in-a-box package, which helped reduce the box sizes and weights that reduced shipping prices. * Wide and Less expensive lands. * Control drip irrigation allowed expansion into marginal land and usage of mechanical harvesters and mechanical pruners reduced labor costs. * Night harvesting to maximize grape sugars, innovative trellis systems permitted wines to be planted at twice density with sunny Australian climate helped farmers freed from many stresses. * Replace cork stoppers with screw caps helped delicate white wines from spoiling. * Cost advantage to drive prices lower and a consistent supply of strong brands at a good price/quality ratio. * Most of Strategy goals had been achieved almost 20 years ahead of schedule. * Built trust in its products and leveraged its trusted brand name by creating Weaknesses: * Over production led to reduce in prices in all export markets. * Droughts led to major cost increases for water and also global energy prices were soaring, thereby increasing production costs. * Price and image problems in US market. Opportunities: * Import of Australian wines into US market. * Buyers not knowing what to purchase after...
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...internationalization management 15 WINE MARKET 17 Profiles of Country Producers 17 CHINESE WINE MARKET 25 Overview 25 Wine market overview 28 Imported wine 32 Italian case 36 Future prospective 45 REFERENCES 48 Bibliography 48 Consulted website 52 INTRODUCTION The purpose of this work is to analyze the growth and evolution of the wine market in China. In particular we will focus on the internationalization of the global wine producer countries in this new emerging market and which are the futures prospective and possibilities of this young market. This paper is composed by four main sections: 1. Theoretical framework; 2. Wine market; 3. Chinese wine market; 4. Italian case. First of all we need to understand what we mean when we speak about internationalization. Through a theoretical chapter, using the existing literature about internationalization, we will explore its theories, evolution and which benefits it may bring to the firm that implement it, showing how important it became in the globalized world in which companies work nowadays. Afterward we are going to analyze, thanks to the data taken by reliable sources, the global market of wine, showing its fragmentation, which are the main player and their characteristics. Now that we have a general panorama, we can concentrate on the Chinese market, its cultural and economic features, and the evolution of its wine market. Finally we will focus on the Italian case THEORETICAL FRAMEWORK ...
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...in the wine industry, nevertheless, the company benefits from the high prices set by its limited production of Opus One which is priced between $90 and $100 a bottle in more than 65 world markets.RMC proves to have some strong key competitive advantages which distinguish the company amongst other rivals. Firstly, Robert Mondavi, being a dynamic sales man in the early years, never spent money on advertising. Instead he relied on trade shows, awards, salesmanship and showmanship. This is clearly described in the case study in which he spent entertaining influential people within the industry and invited the top wine writers to the RMC facility for free meals (Silverman & Castaldi 1999). In addition, he would conduct blind tasting of the RMC wines against reputable French and Italian wines so that the writers could taste for themselves. For over a decade, Mondavi traveled throughout the country and abroad as the company's chief salesperson. Consequently, the RMC wines were able to increase its recognition of and demand for the wines, Mondavi began slowly raising the prices until they were selling for as much as comparable French wines (Thompson & Strickland 2003).Secondly, RMC's strong brand name is associated with wine-growing excellence, award-winning products and marketing innovation. In this situation, RMC enjoys one of the most recognized brands by producing a limited quantity of super- to ultra premium wines using the most prestigious noble varietal grapes. RMC wines strictly...
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...Chateau Margaux Case Study International Business March 19th, 2012 “Who knows whether this ancient system will still be working in 20 years or so?” (Executive Manager of Chateau Margaux). This quote, spoken by an executive manager, very proficiently sums up what is happening to the Chateau brand. The Chateau brand has always prided themselves in their unique process for creating one of the world’s finest wines. However they refuse to change their ways because they are afraid it would damage “their soul” (Deighton 9). As the world markets expanded, other companies began changing formulas or changing how they produce their products n order to keep up with the demands for mass production across the globe. Chateau refused to do this because they wanted to keep their identity intact. They were not being affected because of their product but instead were affected due to their management. They refused to market their product or even sell directly to the customer. As other companies began running ad complains, Chateau did not even know who their target market was because they had no information and their suppliers had little information as well. Take the Coke vs. Pepsi war. Both of these companies have mass produced their product and have found the shortest, simplest, and cheapest way to produce their cola and ship it world wide. This does not mean that their product is better than any other cola, in fact there are some minor brewing companies that also make really good cola. Chateau...
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...Marieshka Barton Wines of Spain Prof. Newton June 15, 2015 Spanish Wine Marketing and Sales Sonoma State University’s Wines of Spain 2015 summer class introduced students to Northern Spain’s prestigious Penedès, Priorat, and Rioja wine regions. Production and marketing professionals from eight wineries hosted our student group and provided facility tours and insights on production, marketing, and exporting. This paper focuses on Northern Spain’s wine industry’s legal regulations, tourism, stewardship, communications, and exports through the lens of wine business marketing. The paper concludes with marketing recommendations relevant to new world (USA, Canada, and Australia) markets. History First, a brief introduction to Spain’s wine history is provided to differentiate Spain from its global competitors and set the context for further analysis. As an “old world” wine culture, Spain has a rich wine history beginning with Phoenician tribes and industrious Romans. Unfortunately, Spain’s nascent wine industry was disrupted due to Islamic rule followed by civil and global wars. In the late 1800’s, French winemakers revolutionized Spain’s weak wine industry. France’s Phylloxera tragedy brought an exodus of French winemakers over the Pyrenees seeking work. By the time Phylloxera reached Spain, viticulturists where already grafting native vines onto American...
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...CHAPTER 2 THE GLOBAL ECONOMIC ENVIRONMENT SUMMARY A. The economic environment is a major determinant of global market potential and opportunity. In today’s global economy, capital movements are the driving force, production is uncoupled from employment, and capitalism has vanquished communism. Based on patterns of resource allocation and ownership, the world's economies can be categorized as market capitalism, centrally-planned capitalism, centrally-planned socialism, and market socialism. The final years of the twentieth century were marked by transitions toward market capitalism in many countries that had been centrally controlled. However, great disparity still exists among the nations of the world in terms of economic freedom. B. Countries can be categorized in terms of their stage of economic development: low income, lower middle income, upper middle income, and high income. Gross domestic product (GDP) and gross national income (GNI) are commonly used measures of economic development. The 50 poorest countries in the low-income category are sometimes referred to as least-developed countries (LDCs). Upper middle-income countries with high growth are often called newly industrializing economies (NIEs). Several of the world’s economies are notable for their fast growth; the BRIC nations include Brazil, Russia, India, and China. The Group of Seven (G7), Group of Eight (G-8), and Organization for Economic Cooperation and Development (OECD) represent...
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...but how to manage them well to take advantage of absolute and comparatives cost ADVANTAGES is the problem. Introduction Africa is endowed with a rich diversity of environmental resources. Some of these are geographical, terrestrial, aquatic and country-specific resources while others transcend national boundaries of two or more countries within the region or continent. Since World War II, Africans have embarked on the massive utilisation of their environmental resources for improving their quality of life and that of their global business partners (Frobel et al. 1988; French 2000). In spite of the abundance of these resources, local communities, predominantly smallholder farmers and pastoralists, whose production systems are based on Traditional Environmental Knowledge Systems (TEKS), are now unable to meet their basic needs, sustain environmental productivity and even have an equitable share of the global wealth (ADALCO 1990). The predominance of international trade over local needs fostered, among other things, specialisation in spatial production and exchange of goods and services on a global scale, what evolved today as theories of Absolute and Comparative Advantage. Consequently, it is evident that in some geographical areas, natural resources are still sustainably utilised, while in others there is evidence of environmental degradation or inefficient utiliatization (Stebbing 1935; Timberlake 1985; Blaikie 1989; Juma and Ford 1992; Rugumamu 1993; Boyce 2002). Yes! The...
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...WINE INDUSTRY | Coopers Creek in New-Zealand | | 30/11/2012 | | ------------------------------------------------- INTRODUCTION Coopers Creek is a medium-sized New Zealand winery, established in 1982, when the New Zealand wine industry was small and relatively unknown. Cooper Creek’s has been growing considerably since its creation and today, it plays a major role on its domestic market (New-Zealand) and appears to be a big actor on the international scene. The company has definitely acquired a strong added value in the wine industry. Along this case study we are going to analyze their strategic choices, from the creation to the future projects and explain how it has succeeded to be a major player, experiencing environment, industry, and organization changes. First of all, let’s have a brief look at the environment. * Political factors: Government regulations in the wine industry increase concerns and new trade barriers. For example, some governments ask for high tariffs on imports. However, the pressure of the WTO has led to a tariff reduction, thus, major wine producing countries imposed their own non-tariff barriers. * Economical factors: The increasing number of middle-class people worldwide has led to an increasing appreciation of wine and a strong demand, particularly, in emerging countries such as China or India. Besides, middle-class in those regions is expected to grow rapidly in the coming years. Currency inflation also...
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...IntMk-CStud-4.qxd 26/05/2005 14:05 Page 563 section 4 case studies cases 4.1 Wal-Mart’s German Misadventure 4.2 Handl Tyrol: Market Selection and Coverage Decisions of a Medium-sized Austrian Enterprise 4.3 Blair Water Purifiers to India 4.4 A Tale of Two Tipples 4.5 Kellogg’s Indian Experience 4.6 Strategic Alliances in the Global Airline Industry: from Bilateral Agreements to Integrated Networks 4.7 GN Netcom in China 4.8 IKEA: Entering Russia 4.9 The ‘David Beckham’ Brand 563 571 574 583 586 590 594 599 604 case 4.1 Wal-Mart’s German Misadventure I don’t think that Wal-Mart did their homework as well as they should have. Germany is Europe’s most pricesensitive market. Wal-Mart underestimated the competition, the culture, the legislative environment. — Steve Gotham, retail analyst, Verdict Retail Consulting, October 20021 We screwed up in Germany. Our biggest mistake was putting our name up before we had the service and low prices. People were disappointed. — John Menzer, head of Wal-Mart International December 20012 ‘Don’t look now:’ low prices all year round! With thanks to Walmart 563 IntMk-CStud-4.qxd 26/05/2005 14:06 Page 564 section 6 case studies section 4 German blues For the world’s largest retailing company, Wal-Mart, Inc., the German market was proving difficult to crack. By 2003, even after five years of having entered Germany, Wal-Mart was making losses. Though Wal-Mart did not reveal these figures, analysts estimated...
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...tea, juice, sports drinks, and bottled water. For over a century, Coca-Cola and Pepsi-Cola had vied for the "throat share" of the world's beverage market. The most intense battles of the cola wars were fought over the $60 billion industry in the United States, where the average American consumes 53 gallons of carbonated soft drinks (CSD) per year. In a "carefully waged competitive struggle," from 1975 to 1995 both Coke and Pepsi had achieved average annual growth of around 10% as both U.S. and worldwide CSD consumption consistently rose. This cozy situation was threatened in the late 1990s, however, when U.S. CSD consumption dropped for two consecutive years and worldwide shipments slowed for both Coke and Pepsi. The case considers whether Coke's and Pepsi's era of sustained growth and profitability was coming to a close or whether this apparent slowdown was just another blip in the course of a century of enviable performance. A rewritten version of an earlier case by Michael E. Porter and David B. Yoffie. Essay: The case study “Cola Wars Continue: Coke and Pepsi in the Twenty-First Century” focuses on describing Coke and Pepsi within the CSD industry by providing detailed statements about the companies’ accounts and strategies to increase their market share. Furthermore, the case also focuses on the Coke vs. Pepsi goods which target similar groups of costumers, and how these companies have had and still have great...
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...10: Cross Business Strategic Fits20 Appendix 11: Evaluating the Strategy of a Diversified Company21 Appendix 12: LVMH's Timeline of Mergers and Acquisitions24 9.0 REFERENCES25 1.0 Executive Summary The aim of this paper is to discuss the key strategic issues that LVMH face and establish some future recommendations that can be implemented in order for LVMH to remain successful in the luxury industry. In order to determine the key strategic issues a number of analysis tools were applied to the case study; they include Porter's 5 forces model, SWOT analysis and PESTEL. It was found that the key strategic issues that LVMH face centred on diversification and vertical integration. A number of strategies have been proposed to offer some recommendations to LVMH, they namely in restructuring their retail sector, considering the concept of moderate diversification and focusing on the human resources side of acquisitions and mergers. 2.0 Introduction This report is based on the analysis of a case study 27 titled: LVMH's Diversification Strategy into Luxury Goods. The scope of this report is limited to the data contained in the...
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...company names referred to in this publication, many of which are trade names, service marks, trademarks or registered trademarks. All materials internally quality assessed by the University of Sunderland and reviewed by academics external to the University. Instructional design and publishing project management by Wordhouse Ltd, Reading, UK. Contents Introduction vii Unit 1 The contemporary world of business and management Introduction 1.1 1.2 The global business environment The importance of developments in the global environment Case Study 1.3 Organisational decision making and performance vii 1 3 10 14 17 19 19 20 Self-assessment questions Feedback on self-assessment questions Summary Unit 2 Globalisation Introduction 2.1 2.2 Definitions and indicators of globalisation Key drivers and facilitators of globalisation Case Study 2.3 2.4 Barriers and inhibitors of globalisation Comparing the costs and benefits of globalization Case Study 2.5 International trade and foreign direct investment Case Study 2.6 Applying Porter’s diamond model 21 21 22 25 27 29 31 32 36 36 40 43 43 44 Self-assessment questions...
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...Chapter 1 expanding abroad: motivations, means, and mentalities Case 1-1 Cameron Auto Parts * Alex Cameron got the family biz when graduated in 2001, when the American economy fell into a recession * History * Auto Pact, big three ship car parts between Canada & US, with tariff free * Cameron focus on small engine parts and auto accessories * Car Sales dropped in 2000, because declining North America and entry of Japanese * High pressure for modernization and cost reduction * Operational survival: cut workforce, overtime, part-time, subcontracting * Recovery and diversification * The short-term future seemed positive, but the popularity of Japanese car forced it to diversify * Working as an OEM Cameron did little to be innovative * Alex brought in a team of designers, concentrating on developing products with a wider ‘non-automotive’ market appeal * The first year no progress, Alex lured away a key engineer from the Canadian firm, and mid-2003, developed its own line of flexible couplings * Marketing the new product * Hired eight field sales representatives, stress product quality, service and speed of delivery, but not price. * Financing plant capacity * Increasing sales of flexible couplings required a new separate plant, but the financial position is not strong enough to support it * Foreign markets * Took a European Patent * A licensing opportunity ...
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