Wine Industry Case Study

The origin of the wine can be traced back to around 4000 BC, when it was produced in the Middle East during the days of Mesopotamian civilization. Wine has come a long way from being a drink associated with religion and rituals and enjoyed mainly by the upper class to a social drink enjoyed by a larger section of society which can be mainly attributed to economic prosperity.

The drivers of competitive advantage in the modern wine industry as compared to those of the earlier eras are quite different from each other.

In the early days of wine industry, climate used to play a major role with respect to the yield and the quality of the wine, since the producers had no way to foresee the expected climactic changes. However, in the modern times,

This has helped a lot of non-traditional players to secure a strong position in the global market. world players

The presence of strong distribution network is one key driver of the modern wine industry, which makes sure that required stock is always available to the end customer. The consolidation of the wholesale business in the 1990s further strengthened the distribution network and brought more control with it, which was missing in the pre 1950s era.

In the earlier times, wineries kept their identities separate, whereas one of the recent trends in the wine industry is that of consolidation. Increasing consolidation in the new age markets helps to establish as a bigger player and also expand the product line.

The consumers’ preferences have also changed in the recent times. While some of the traditionally wine drinking geographies have shown a slight slump in the consumption of wine, there are geographies like Japan which have shown quite optimistic trends in terms of its wine

Also, consolidation is the current trend in the wine industry, so the wine producer should think on the lines of whether it wants to grow big and acquire other small wine producers on its own or else would it be favorable in terms of capital gain to build a good brand appealing to the consumers and be acquired by one of the biggest player in the market.

The most important steps in the process of wine production are the deployment of technological advancements to ensure good and consistent quality of wine production in today’s highly consumer centric market.

The second most important would be the brand building activities which the wine producer needs to handle very carefully and should be in line with taste, aroma and also the region where the wine is produced to convey a strong message to a larger audience.

Wine making in today’s world is indeed a global industry. The growing demand for wine world wide and in some of the traditionally non wine drinking geographies is an evidence of its emergence as a global drink. The production of wine in certain geography doesn’t mean that its consumption will be limited to it; rather much of it is exported across continents. The emergence of some of the major wine producers from traditionally non wine producing countries also gives up an insight into emergence of wine industry as a global