Global Wine War 2009 New World versus Old Case Solution

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The case compared the traditional Old World wine sector with the new market-focused and competitive New World producers, the fight for the US consumer segments, and the highlylucrative export goal in 2009 due to its huge, increasing, high priced market divisions. The case encouragesassessment of the manner in which new players can alter the regulations of competitiveness in an international industry. It additionallyputs forward the question of how participants can react, especially when restricted by law, tradition, and different abilities than those needed to satisfy altering consumer expectations and market frameworks.

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Questions Covered

1. How were the French able to dominate the worldwide wine trade for centuries? What sources of competitive advantage did they develop to support their exports?

2. Given the longstanding dominance of Old World wine producers, how were the New World producers, such as the Australians, able to expand their market share so rapidly in the 1990s?

3. What changes in the global industry structure and competitive dynamics led the France and other traditional producers to lose market share to challengers from Australia, US, and other New World countries?

4. What should be done for France to restore its position?

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