Global Wine War 2009, Old World Versus New World

Global Wine War 2009, Old World Versus New World

18–10–2011 Authors:Femke de Jong – s2226197Martje Kiemel – s2247852Fatima Mourhiya – s2161516Linda Verkerk – s2224194 | | case paper: global wine war 2009 |



| case paper: global wine war 2009 |



Preface

The assignment for this week was to write a paper based on the case Global Wine War 2009: New World versus Old. We experienced that it was an interesting case considering both Porter's five forces model and Resource–Based theory, because they give two different perspectives of competitive advantage: Outside in and Inside out. Besides that we could have a closer look at innovations and what they mean for the competitiveness in the world wine market. In this paper we make an effort in explaining what the main aspects ... Show more content on Helpwriting.net ...For example, the Appellation d'Origin Controllée (AOC) law in France. Italy followed France and also introduced laws and regulations. Producers supported these laws and regulations, they saw this as an opportunity to differentiate their wine and raising the entry barriers. In a later stage other regions in France were given the, usual lower ranked Vin Delimités de Qualite Superieure (VDQS) and the, even lower ranked Vin de Pays, inexpensive but very drinkable wines for French tables and increasingly for exports. Although this movement was quite rigid, due to a belief that quality was linked to terroir.

A New World was born

In the last quarter of the 19th century, the 'phylloxera' from the 'new world' caused the devastation of the French vine stock which led to an enormous decrease of wine supply, while demand stayed at the same level. The French solved this problem by importing vine roots from the US that were resistant for the 'phylloxera'.

At this point, the New World outperformed the Old World. Compared to the Old World, the New World had several advantages. First, suitable land was widely available and less expensive. Second, the New World began to experiment with wine technologies which led to great innovations in the wine industry. Because of these innovations, the costs of producing a tonne of wine in the New World decreased drastically compared to the Old World. The third advantage of the New World occurred in the distribution. The New World wine companies

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