An Analysis of Globalization Forces in the Wine Industry: Implications and Recommendations for Wineries

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.

Author(s):

Mahmood Hussain*, Ph.D.
Assistant Professor of Marketings
College of Business
San Francisco State University
San Francisco, CA 94132, USA
Phone: 415-338-6290
Fax: 415-338-0596
Email: hussain@sfsu.edu

Susan Cholette, Ph.D.
Assistant Professor of Decision Sciences
College of Business
San Francisco State University
San Francisco, CA 94132, USA
Phone: 415-405-2173
Fax: 415-405-0364
Email: cholette@sfsu.edu

Richard M. Castaldi, Ph.D.
Professor of Strategic Management
College of Business
San Francisco State University
San Francisco, CA 94132, USA
Phone: 415-338-2829
Fax: 415-405-0364
Email: castaldi@sfsu.edu

* Address correspondence to Richard Castaldi.