Wine War

Question 1:

How did the French become the dominant competitors in the increasingly global wine industry for centuries? What sources of competitive and comparative advantage were they able to develop to support their exports? Where were they vulnerable?

The French became the dominant competitors in the increasingly global wine industries for centuries for different reasons:

* Historical First mover advantage in producing high quality wine and opening to the international market.

* Strong reputation and experience

* proposes a variety of products

* notion of “Terroir”

* AOC codification

* High demand over the French wine at international scale (French Wine Equity)

What sources of competitive advantage were they able to develop to support their exports?

* Keen to taste and tradition in the production of wine (strongly tight to the French culture)

* Artistic and historical talent and expertise in wine making

* Well located as to the high demand markets (i.e England)

Where were they vulnerable?

* Constraints dues to embedded traditions and practices, restrictive industry regulations, and complex national and European community legislation.

* They refuse any innovation in the processes or challenging in production norms like irrigation

* Lack of rational assessment of their place comparing to other countries.

* Fragmented and smaller vineyard and producer lack of bargaining power

* Notions like “terroir” that don’t guarantee quality due to lack of rational approach.

* Absence of any marketing plan or strategy

* Problems of distribution

Question 2:

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?

The changes that led France and other traditional producers to lose market share can be...