An Analysis of Globalization Forces in the Wine Industry

Abstract

Abstract This paper examines the driving forces and key success factors related to the increasing globalization of the wine industry. It further analyzes the current competitive advantage positions of four Old and five New World wine producing countries. The group with the strongest sources of competitive advantage position includes the United States, Australia, and Chile. The group of countries with moderate competitive advantages includes Italy, Spain, Argentina and South Africa, and the countries with the weakest competitive advantages in the global wine industry are two traditional strongholds of wine production from the Old World: France and Germany. This competitive advantage scenario should be a wake-up call to many countries. The study offers three specific recommendations for wineries of all sizes in all nations. They are: (i) increased emphasis on market orientation, (ii) increased export assistance, (iii) managing trade barriers effectively.