This is important, because it shows how despite an implosion in demand, many producers felt that their underlying business model would overcome these issues. (Bartlett)
How New World Growers were able to pose a substantial Threat?
New world growers were able to pose a major threat by using some the latest techniques to address the underlying problems. This can be seen through VRINE analysis, as: the lower price would represent value, the unique taste showing rarity, the same kind of wines as old world producers highlighting imitations, the growth in other regions of world signaling no sustainability and the expansion into new markets showing explore ability. These different elements are important, because they are highlighting how new world producers were able to create a shift in consumer tastes (posing a substantial threat). (Bartlett)
How Old World Growers have tried to solve the Problem?
Old world producers tried to solve the problem by stressing their traditions and quality. This is problematic, because VRINE analysis reveals: they were having trouble creating value (due to their higher prices), they felt the public was use to drinking their wines (creating a sense of rarity), the belief that these wines were one of kind highlighting imitations, the focus on the UK market is indicating un sustainability...
When you put these different elements together, they would underscore how the strategic alliances that were used to address the problem did not work. This is because the business model could not tackle fundamental changes in the industry. (Bartlett)
The effect of Government Intervention
Government intervention did little to solve the problem, as many growers were protected in their domestic markets (which were seeing declining demand). In the case of old world producers, it would have no effect on preventing the loss of influence and market share. This is important, because it shows how globalization would have an impact upon the industry. (Bartlett)
Clearly, the production and distribution of wine is continually changing. Part of the reason for this, is because of increasing competition and changes in consumer tastes. These two elements are important, because they are highlighting how this has been evolving. As new world wine producers are able to gain market share over old world growers.
Bibliography
Bartlett, Christopher. (2003)." Global Wine Wars." Harvard Business School, 21 July 2003. Print.
MLA Format. http://owl.english.purdue.edu/owl/resource/747/01/
