...CONTENTS AND TABLES Wine in Venezuela - Category analysis .......................................................................................... 1 Headlines ........................................................................................................................................ 1 Trends ............................................................................................................................................. 1 Production, Imports and Exports................................................................................................. 3 Competitive Landscape .................................................................................................................. 3 Prospects ........................................................................................................................................ 4 Category Data ................................................................................................................................. 5 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 15 Table 16 Table 17 Table 18 Table 19 Table 20 Table 21 Table 22 Table 23 Table 24 Table 25 Table 26 Table 27 Table 28 Table 29 Table 30 Table 31 Table 32 Sales of Wine by Category: Total Volume 2006-2011 .................................. 5 Sales of Wine by Category: Total Value 2006-2011 ..................................... 6 Sales of Wine by Category: % Total...
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...as growth was dependant on the hoarding of finite materials, a country’s gain was always translated by another’s loss. As it may be perceived this was a system that encouraged the prevalence of trade disputes and war between nations instead of peaceful cooperation between them. In 1776 an English academic and philosopher published a book that broke through will all economic assumptions held to be true at the time, and advocated for a completely different system. His name was Adam Smith and his work became known as “An Inquiry into the Nature and Causes of the Wealth of Nations”. Adam Smith began by disproving the mercantilistic notion of trade protectionism where exports were maximised in detriment of heavy restrictions on imports. According to Smith, international trade could in fact be beneficial to all participants if each country would specialise in the production of goods where it had an absolute advantage in terms of costs. By producing a good cheaper than everyone else and by importing others, a country could immensely gain from international trade. Although revolutionary, Smith’s theory of absolute advantages was not free from flaws. In fact if a country didn't have such advantage in producing a given good it wouldn't have access to trade, or in another words, trade wouldn't occur if country A couldn't be the most efficient in producing good B. In this context and in attempt to improve Smiths’ theory, David Ricardo a British political economist of Portuguese...
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...THE GINESTET CASE STUDY. INTERNATIONALISATION AS A WAY TO RENEW BORDEAUX WINE ECONOMY’S ENTREPRISE SPIRIT (1978-2000) Christian Delpeuch, chief executive officer of Ginestet, Bordeaux, & Hubert Bonin, professor in contemporary economic history at Bordeaux Political Sciences Institute The Bordeaux wine economy endured a grave crisis at the beginning of the last quarter of the 20th century: most of its familial trade houses were submerged by losses and failed down. The renewal of bordeaux wine economy was due to new forms of capitalistic and commercial strategies. Large French financial groups (Suez, Paribas) linked to investment banks, or foreign French and alcohol and spirits groups (Bols, Seagram, Pernod-Ricard, Rémy-Cointreau) or wholesale traders (John Holt) took hold of Bordeaux wine houses. But this trend was brought to a halt at the very end of the century: specialists in wines and alcohols more and more prevailed. Multiregional wine sellers constituted groups which developed all over France dynamic policies to rebuild commercial networks. Whereas their strategy turned towards the internal mass market doesn’t matter here, their involvement in the reshaping of an international network and trademark will be the core of that case study. Whilst waiting for a large synthesis about Bordeaux trade at the end of the century1, we’ll concentrate our attention on a middle-size company, Ginestet, as a testimony about the requirements of internationalisation but...
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...4 Reason to get international 14 Issues in 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...
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...implications for international trade. Absolute Advantage Comparative Advantage Product-Life Cycle Theory You will prepare a two-page Position Paper answering these questions. Explain each concept and its practical implications for international trade in the year 2010. The concepts will be constructed from the textbook (there are concrete answers). The implications will include your own opinions based on what you have read and analyzed. Your instructor will look for clear analysis, valid conclusions and solid recommendations for each concept and implication Purpose; Explain concepts and implications for international trade. Absolute advantage, A country has an absolute advantage in the production of a good relative to another country if it can produce the good at lower cost or with higher productivity. Absolute advantage compares industry productivities across countries. A country has an absolute advantage over another in producing a good, if it can produce that good using fewer resources than another country. For example if one unit of labor in India can produce 80 units of wool or 20 units of wine; while in Spain one unit of labor makes 50 units of wool or 75 units of wine, then India has an absolute advantage in producing wool and Spain has an absolute advantage in producing wine. India can get more wine with its labor by specializing in wool and trading the wool for Spanish wine, while Spain can benefit by trading wine for wool...
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...International Trade Debate Just like every debate, there are positives and negatives to the main topic. The same can be said for international trading. International trading has been going on between countries for years and is a big part of keeping individual economies stable. Not every country has the resources it needs to produce certain products. To obtain resources they need, they trade with other countries. There is however a downside to international trading and that is when a countries using international trading to get a better price. It can hurt its own economy. “For” International Trade International trading is definitely helpful to the economy for the most part. The main reason for being “for” international trading is that a country can obtain resources or products that they themselves do not have access too. An example would be if France doesn’t have the right soil to grow rice, but can produce wine, they can trade for rice from another country, like India. France has a comparative advantage in producing wine and India has a comparative advantage in producing rice. Comparative advantage is when a country has the ability to produce a good or service cheaper or faster than someone else. By each one of these countries having comparative advantage, it can lead to more gains from trade. France may be able to produce rice but because of the bad soil, they might not be able to produce as much as India can in the same amount of time. Depending...
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...Geographical Market To Export Melita Wines Executive Summary In this report focus is brought forward to the Chinese wine Market. A detailed analysis is done on the market, followed by the competition faced by imported products. Key locations in China for wine importation are named and the Chinese drinking habits are analyzed. The Chinese and Maltese relations are studied. And Cisk is taken as a case study as a success story of a Maltese company that is exporting beer to China and is seeing profits. Lastly, the recommendations and way forward are said as a conclusion. Table of Contents Contents Page Title Page 1 Executive Summary 2 Table of Contents 3 Chinese wine industry 4-5 Competition and Pricing 6 Key locations 7 Drinking habits 8 China- Malta relations 9 Case study 10 Recommendations 11 Bibliography 12 * Brief History of the Chinese Wine Industry While there have been commercial wineries in China since the end of the 19th Century, production has only evolved into a serious industry in the past two decades. There are now an estimated 450 wineries, although the largest four hold around 50 % of the market share. Imported wine reached the height of its popularity in 1996 when it occupied half of the Chinese market. When China moved to restrict wine imports with quotas and high tariffs, domestically produced wine increased its dominance in low and medium...
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...Scientific Article DALAT WINE: CHALLENGES IN ESTABLISHING THE NATIONAL WINE BRAND POSITION IS STILL YEARS AHEAD -*Ngo Binh, MA. in Marketing Bui Thi Lan Huong, PhD. I. COMPANY HISTORY 1.1 Wine manufacturing traditional in Dalat (Vietnam) Dalat wine has been popular in Dalat, an attractive city located 1500 m above sea level on Langbian high lands. For long time ago, Dalat wine has been produced traditionally by local producers from blackberries (dau tam). Traditional wine makers in Dalat grow themselves dau tam at Bong Lai area. It is reportedly that the first wine producer was Lafaro, a local company founded by Nguyen Huu Duc in 1974. This company imported a new variety of dau tam to produce its wine. Unfortunately, the company stopped to operate in 1975. Nguyen Chi Man, a 80-year-old man, who did distribute this wine at that time, asked the company's owner this variety of mulberry' seeds to grow, then to make wine for his own consumption and later on for his small business in Dalat. Since then, other traditional wine makers follow him to open wine factories and mulberry plantations, especially in Bong Lai. Because of their small scale, they did not build up particular brand name for their wine. Dalat wine has been considered effectively as a “geographical indication”. Dalat wine has been consumed mostly by Dalat residents. The mind climate of Dalat is the favorable place for consuming red wine, especially in traditional holidays. According to Nguyen Trong Anh Dong, Vice-Secretary...
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...STRATEGIC DILEMMAS OF A SMALL MARKET PLAYER: THE CANADIAN WINE INDUSTRY Judith J. Madill Eric Sprott School of Business, Carleton University 1125 Colonel By Drive, Ottawa, ON, Canada, K1S 5B6 +1 (613) 520-2600 Ext. 8014 Fax: +1 (613) 520-4427 e-mail: Judith_Madill@carleton.ca Allan L. Riding Eric Sprott School of Business, Carleton University 1125 Colonel By Drive, Ottawa, ON, Canada, K1S 5B6 +1 (613) 520-2394 Fax: +1 (613) 520-2363 e-mail: al_riding@carleton.ca George H. Haines, Jr. Eric Sprott School of Business, Carleton University 1125 Colonel By Drive, Ottawa, ON, Canada, K1S 5B6 +1 (613) 520-2600 Ext. 7487 Fax: +1 (613) 520-4427 e-mail: george_haines@carleton.ca Abstract This paper undertakes an analysis of the strategic situation of the Canadian wine industry. A very small player by world standards, Canadian wineries face intense and intensifying competition within the domestic market. The demand side of this market is dominated by a small number of large provincial monopoly retailers. The supply side comprises five substantial firms that account for ninety percent of total wine production and a large number of very small wineries. The Canadian competitive environment is characterized by strong historical reputations of (and consumer preferences for) Old World wines, economies of scale and technology associated with New World wines, (at best) stable per capita wine consumption patterns, rapid increases in both the number of domestic wineries and land under viticulture...
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...Executive Summary Traditionally, Australia-China trade & economy was simple. Australia met the demand for raw material for China’s manufacturing & China exporting back to Australia its finished manufactured goods. Thus China-Australia became each other’s largest trading partners. Now that China’s economy is affected, less spending on infrastructure the demand has shifted from raw materials & commodities to other specialized manufactured equipment, services like health, education, financial, engineering, agriculture etc. for which Australia has to change gears to gain distinctive advantage to its other competitors. However in Chinese economy there still exists substantial market for Australian commodities, such as wool, wines, wheat, minerals & iron ore, as Australia has advantage of nearness by sea for the shipping lines. The Free Trade Agreement is a win-win situation as Australia can easily meet the changed needs of Chinese for sophisticated medical goods & services in Health, Social Security, Human Resources, Banking, Education, Legal, Agriculture, Winery & Dairy. China’s economic woes & slowdown in addition to general economic slump has impacted Australia hard, specially the mining cum trading houses at present. This impact is not limited to just Australia but whole of Asia-Pacific, lain America & Canada. Thus to conclude, there are some positives about the Australian economy as GDP growth is up from the last year & China needs Australia, as it shall always...
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...Chilean Wine Industry’s National Competitiveness Using Porters National Diamond. Part 1: Porters National Diamond model is used to analyse a firm’s ability to compete in a home market, their ability to compete in a foreign international market and to recognise the particular country and market within that, which a firm would be suited to expanding into. In doing so it analyses the viability of a nation to compete in any given market. The model is described by Ozlem Oz (1999) as “a dynamic system which all elements interact and reinforce each other”. The elements to which this refers are; Factor Conditions, Demand Conditions, Firm Strategy, Structure and Rivalry, and Related and Supporting Industries. These main elements are supplemented with Political and Chance factors which influence all of them. The model explains the relationship between related industries and how this helps successful development. Porter believed that a healthy competition would drive the firms to be innovative. With a competitive market, people have more choice and this provides great market research availability to find out what people want. Fig.1, Michael Porter, Porter’s National Diamond (1990) Throughout this report an analysis of the Chilean wine industry’s competitiveness at an international level will be carried out. Care will also be taken when considering how well the company in question will be suited to expanding into this market. The diagram above, figure 1, displays...
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...economic, financial, trade, and communications integration (Frank, 1998). It implies the opening of local and nationalistic perspectives to a broader outlook of an interconnected and interdependent world with free transfer of capital, goods, and services across national frontiers. Drivers in the business concept are critical forces which can be built within business strategy to enable a company to attain its set goals (Gilbert, 1994). Barriers to industry development are forces that deters the business organization from attaining the desired goals and these are encountered both in the internal as well as external business environment (Hough et al 2011) It is therefore imperative to evaluate key drivers and barriers affecting development in a bid to craft strategic tools that can stimulate strategic thinking, generate strategic foresight, provide a basis for testing existing strategies, explore and understand complexities of the future (Trompenaar et al, 2003). This can aid decision making and contribute to preparation for the future. As such, this essay seeks to explore key issues in strategic management and key theoretical models in the South African (SA) Wine Industry and that of the United Kingdom (UK) in order to stimulate strategic thinking and conversations, pave the way for new ideas and approaches and encourage innovation. This can prepare both the industry and wine producers for possible challenges that they may face in the future. Globally the wine industry consists...
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...marketing. Discuss drivers and how they have assisted the development of the global wine market. How do the macro environments (political, legal/regulatory, cultural, and economic) influence the ability of the wine industry to grow within a given country? . There have been many factors that have led to the growth in the global economy. Some drivers that have been discussed in this course so far are: peace following WWII, the global support of GATT & the WTO, along with major improvements in information technologies and communications. But as the world revolutionized so did world trade and the global wine industry. Innovations where born, and communication between countries became easier which streamlined the distribution process a global market for the wine industry began. The demand for wine also increased worldwide as World War II came to a close. We learned in Chapter 1 that global commerce thrives during times of peace. An increase in the demand for wine during the postwar era coupled with new innovations that enabled wine to travel further distance without going bad, allowed “New World” producers to step up and compete with “Old World” traditional wine makers. This in turn caused new regulations and “standards” (of which we learned about in chapter 2) in order to protect their own domestic wine industry. As discussed on page 37 in Chapter 2 of our text, trade barriers exist to protect players amongst an industry and to encourage development...
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...Expansion: Nuova Vita Produttori di Vino Biologico 11/26/2013 By: Gali Prat,International Expansion Project Director Rebuilding Strained ties through fair trade. Project Overview Here at Nuova vita Produttori di Vino Biologico we pride ourselves in family and phenomenal old school organically produced wine. Fermatation takes a juice of grapes,and turns it into a beautiful wine. Much like a fine wine our business has slowly expanded to the enterprise we have todayover the past 50 years. We started with 1 family vineyard in the outskirts of Rome and now we own 4 more properties in Santa Barbara County California.With the sprouting new middle class of Sao Paulo, we find a perfect place establish and nurture a new relation with the oversees market of Brazil. Much alike many of our competitors in the California wine market we have noticed an increasing trend in demand for our wine in the country of Brazil. The most noted growth was noted in the growing middle class of Brazil. Our company introduces this situation in a time of recent strains of the US-Brazillian relations. It was recently denounced that the personal emails of the Brazillian president was bugged by US Data Surveilance agencies. Through the practice of goodwill through the trade of a product widely known for its benificial properties we hope to introduce our organic wine to the people of the Sao Paulo metropolis. Bringing our wine to Sao Paulo will set our foot in the door for the greater market of South...
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...Theories of International Trade & the Multinational Enterprise Theories of International Trade & the Multinational Enterprise International trade is the exchange of goods and services across borders. Trade provides people with greater selection of goods and services to choose from. The importance of international trade to a nation economic welfare and development suggest that economies need to export goods and services in order to generate revenue to finance imported goods and services which cannot be produce indigenously (Coutts and Godley, 1992: McCombie and Thirlwall, 1992). Most theories of international trade such as comparative advantage theory, product life cycle theory, and transaction cost theory are based on trade flows between at least two countries. In theory of absolute advantage, Adam Smith wrote in The Wealth of Nations (1776), "If a foreign country can supply us with a commodity cheaper than we ourselves can make it, better buy it of them with some part of the produce of our own industry, employed in a way in which we have some advantage.” (Book IV, Section ii, 12). It means that a country should produce goods where it is more efficient, and trade for those goods where it is not efficient. Therefore, trading will be beneficial between two countries. It is because with the same amount of input, the country which has absolute advantage than others, is able to produce more of a product. Smith’s thoughts on the division of labour constitute the basis...
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