Read Case 2-1 Global Wine War 2009: New World versus Old
The purpose of this case is:
- to allow you to undertake an industry analysis in a fairly simple global industry
- to examine the potential sources for change–and the erosion of barriers preventing them–as they drive a transformational restructuring of global competitive positions
- To analyze the strategy of new entrants and understand how they were able to dislodge well established incumbents by changing the rules of the game; and to understand the source of inertia among incumbents that prevented an effective response
- to provide an opportunity to develop strategic initiatives to build global share and responses to defend established positions in a global industry
Use information in the chapter and other relevant resources to answer the following questions. Use illustrations such as tables and graphs where appropriate in the analysis of the case.
- How did the French become the dominant competitors in the increasingly global wine industry for centuries? What sources of competitive advantage were they able to develop to support their exports? Where were they vulnerable?
- What changes in the global industry structure and competitive dynamics led France and other traditional producers to lose market share to challengers from Australia, United States, and other New World countries in the late twentieth century.
- What advice would you offer today to the French Minister of Agriculture? To the head of the French wine industry association? To the owner of a mid-size, well regarded Bordeaux vineyard producing wines in the premium and super premium categories?
- What advice would you offer today to the Australian Minister of Agriculture? To the head of the Australian wine industry association? To the owner of a mid-size, well regarded vineyard in the Barossa Valley (a premier Australian wine region) producing wines in the premium and super premium categories?
- What advice would you offer to the US Secretary of Agriculture? To the head of a major US wine industry Association? To the owner of a midsize, well regarded vineyard in Napa Valley producing wines in the premium and super premium categories.
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