This Note examines the wine industry wine industry as a basis for discussion as a competitive advantage is created as an advantage may be lost when the innovative strategies challenge the incumbent players. The wine industry in 2003 was in a state of transition. Historically, the number of products and fragmented international markets made it almost impossible for the company to establish a dominant international position. In addition, because the wine was of agricultural products and, depending on the weather, security of supply has been unpredictable. However, well-capitalized international winemakers are emphasizing global presence and brand awareness. The huge success of the new world producers experienced in markets traditionally dominated by European vintners were increases the emphasis on the creation of recognized brands, stable distribution mechanisms and targeted advertising campaign. Only time will tell if the wine industry remained one, where terror and mystery wine prevailed, or international brands crowd out local and regional wineries.
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by Andrew C. Inkpen, Rod Phillips 17 pages. Publication Date: January 9, 2004. Prod. #: TB0155-PDF-ENG
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