Global Wine Wars

New vs. Old World Wine Producers

Global Wine War

Bob Smith Pawel Wencel Richard Black, Jr. MBA 602 April 19, 2011

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Table of Contents

Contents Table of Contents………………………………………………………………………………….2 Executive Summary……………………………………………………………………………….3 Problem Statement………………………………………………………………………………...4 Challenges…………………………………………………………………………………………4 Industry Analysis………………………………………………………………………………...11 SWOT Analysis………………………………………………………………………………….12 SWOT Summary…………………………………………………………………………………14 Porter’s Five Forces Model………………………………………………………………………15 Alternatives………………………………………………………………………………………19 Recommendation………………………………………………………………………………...22 References………………………………………………………………………………………..24

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Executive Summary

Strict AOC regulations have hindered the Old World wine producers, specifically France, from competing on the same level with the New World wine producers. With global consumption and production trends changing significantly, the Old World wine producers face many obstacles that challenge their traditional operations. These challenges include shifting consumer behavior patterns, wine production and consumption levels, fragmentation and limited integration along the supply chain, lack of brand and marketing strategies, and most importantly strict government regulations. Even with the challenges faced by the Old World wine producers, there are still many opportunities to overcome the challenges for growth and success. It is imperative that the Old World wine producers capitalize on these opportunities and implement the best strategies to ensure stability and growth in their production and sale of wine. It is recommended that Old World wine producers continue to lobby the government to eliminate or relax the AOC regulations that hinder their operations. This will enable them to allow for more innovation, creativity, and efficiency in the production of the wine. Simultaneously, the Old World wine producers will need to begin to merge with each other to...