In order to know if wine is a global or local industry we will assign a score between 1 and 5. (1 means that the assumption is not very accurate and 5 meaning that the assumption is totally accurate.)
Globalization factors :
•The consumption of wine is now worldwide
•Production occurs in almost all continents
•Exports and Imports of this product are high
•The goal in the industry is to gain new markets and become popular
•Wine is a drink which is very common nowadays, so people can now distinguish between good and bad wine bad: that's why quality is increasingly gaining in significance.
Localization factors that work against globalization in this industry :
•Production techniques vary a lot in the different production regions
•Commercial and selling techniques are not used on the same scale everywhere
•Important gap in the pricing policy between old and new wine producers:
•Laws and regulations pertaining production is changing according to the place where the wine is produced
•Customers from different regions can have a totally different palate and it is usually very hard to create a global consumer profile
[...] Capture new market specially the Asian and American ones. For that, the marketing (by using formats, colors and packaging) must be adapted to the demand, the tradition and the way of life of the aimed market. It is the famous «Think global. Act local.». The French wine industry must, beforehand, realize a precise and market analysis in order to well target and structure future action to lead. In the same way, it can develop its firm in the East of Europe and in North of America. [...]
[...] In addition, the unique rate policy, based on the ordered quantity, is applied to all distributors and reinforces the French wine negotiation power on its customers. Finally, in this industry particularly, demand is very difficult to predict given that alcohol consumption decrease every year. For French people, wine consumption become less and less a priority. The bargaining power of suppliers : Given that the industry directly transform the raw materials (that is to say grapes and bottles), the purchase circuit is direct. Consequently, the suppliers' negotiation power is in favour of the French wine industry. [...]
[...] It is an advantage for both sides: the French supplier is sure to export a quantity of wine and to benefit to the marketing of its foreign partner and the partner obtains in low cost a wine that it can adapt to the local market. To sum up, it is essential to the French wine industry to innovate and adapt itself to the world. It also important to keep in mind the famous triangle: segmentation, differentiation and positioning. For top-of-the- line wines and common consumption ones, the positioning is clearly good taste, tradition and expression of soil. [...]
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[...] Additionally, fame and reputation are two effective deterrence tactics. Independent wine industries, despite its specificity, do not have the same reputation, particularly, the international dimension. Regarding the entry barriers, the financial aspect has a quite important effect. Indeed, investment in production tools is consequent especially during the establishing of a firm like this. It can represent a brake for new competitors. In the same way, grounds purchase is very hard nowadays insofar as grounds suitable for cultivation are, in generally, already bought and used. [...]
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