The economic impact of these innovations largely decreased the production costs of the New World comparing with the Old. Furthermore, a new national wine committee should be built to work on simplifying the complex classification systems.
Furthermore, since there are only handful of icon brands prospered at the top of the market based on image and quality, the producers should support a branding strategy to bring more recognized brands to the global markets to improve the image and reputation.
The Brilliant Old World Grape growing and winemaking are indispensable Global wine war case 2009 essay in the progress of human civilization. Natural and economic factors caused an increase in production cost, so the producers should improve their efficiency further to reduce the production costs despite their achieved high efficiency of production.
The Emerging New World Under the influence of immigrants from the Old World wine countries, wine industries in Argentina, Chile and South Africa have developed rapidly since 18th century. The new wine industry players such as Australia, the United States and Chile are changing the global industry structure, leading the global industry trend, and challenging the traditional wine makers by introducing innovations at every stage of the Global wine war case 2009 essay chain.
In addition, the government should develop the association between Australian regions and wine varieties or styles. The growth in Italian imports was occurring mostly in the popular priced range that was their historic strength. They learned the value of differentiating their products and making them more appealing to palates unaccustomed to wine.
As the major European producing country which has a long winemaking history, France is a representative country of the old world of wine industry. In spite of the size and reputation of the wine production of Old World countries made themselves the dominant competitors in the increasingly global wine industry for centuries, they constrained by their wine-making traditions, restrictive industry regulations and complex national and European Community legislation, New World is catching up with them tightly, and a fierce battle has been fighting between Old World and New World.
Thirdly, the biggest problem was that declining demand at home and a loss of share in export markets had caused a structural wine surplus. At the same time, demand was growing in many wine-importing countries, including the U. These experiments provided valuable lessons in branding and marketing.
Global Competition between New World and Old With the intensifying competition between New World and Old, significant changes happened during the last quarter of the 20th century made the competition increasingly fierce.
Furthermore, few European wine companies had the volume to support a branding strategy. Historically, only the handful of Old World producers whose wines achieved icon status were recognized brands, and these brands appealed to the elite, who represented only a tiny fraction of the global market.
Changed Marketing Model In addition to the innovations of grape growing and winemaking, New World also innovated in packaging and marketing.
Old World The radical shifts in demand proved extremely challenging to Old World producers. Regardless of government, wine industry association or wine producers should think over it. French wines extended their penetration into the super premium segment.
New World In spite of the swings in fashion posed a problem for growers, New World wine regions had the capacity and the regulatory freedom to plant new varieties in new vineyards and could respond. Challenges to New World In spite of the success achieved in the competition with Old World, New World wine companies were also facing challenges.
Maturing Global Markets and Changing Global Demand Patterns A declining demand in worldwide consumption occurred from toespecially in the highest-consumption countries, such as France and Italy, and countries with drinking cultures, such as Spain.
Advice to the U. However, if you ask someone the same question nowadays, the answer would be different. Strict and recognized laws and regulations to control almost every aspect of winemaking to ensure the quality of wine and to help consumers identify their finest wines.
Long history of grape growing and winemaking, long-standing wine culture and a prosperous economy formed an excellent development environment.
Advantages of Positioning and Branding Appropriate positioning and recognized brand are the key factors for wine producers to appeal to consumers and to increase their market share. And the government should provide more funds to distill surplus wine into industrial alcohol.
These changes brought more profits, more recognition of consumers, more market share and more marketing experience to New World companies.
Advice to Australia Secretary of Agriculture, Major Wine Industry Association, and Wine Producers Advice to the Australian Secretary of Agriculture The government should support domestic brands which are targeted in separated consumer group, and these actions should cover accessible premium brand wines and promote ease of enjoyment.
Advice to Both Sides Facing the challenges of changed demand, restrictive industry regulations, increasing costs and competitors, how to survive from the fierce battle?
Advice to the Wine Producers Australian wine was also facing price and image problems, its bumper crops of had led Australian producers to aggressively reduce prices in all export markets.
Innovation of viniculture such as night harvesting, trellis systems, fertilizers and pruning methods pursued to increase yield and grape flavor. Furthermore, climate and soil allowed grape growing to flourish in the New World, the consumption of wine in these countries varied widely.Global Wine War Fix - Free download as Powerpoint Presentation .ppt /.pptx), PDF File .pdf), Text File .txt) or view presentation slides online.5/5(5).
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Global Wine War New World versus Old case study The case contrasts the tradition-bound Old World wine industry with the market-oriented New World producers, the battle for the US.
Case: Global Wine War New World versus Old Questions: Read the case study thoroughly and then attempt to provide short answer to the questions below: How did the French become the dominant competitors in the increasingly global wine industry for centuries?
what sources of competitive advantages were they able to develop to. CASE REPORT: Global Wine Wars: New World Challenges Old (Harvard Business School Case # ) NMI the most desirable export target in due to its large, fast-growing, high priced market segments.
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