Global-Wine War: New versus | Assignment

RUNNING HEAD: CASE STUDY
Global Wine Wars
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1CASE STUDY
Introduction:
The welcoming of the increasing policies, regulations and classifications within the wine
industry was done with the view of differentiating a particular product from the competitors.
However, it did not turn out to be favorable for traditional wine producers because within
decades of the introduction of the policies, the new regions, hereafter being called as the New
World started to produce wine with the use of new technological innovations (Anderson &
Nelgen, 2011). . Since the wine production of the new countries were not constrained by any
regulations, the wine produced in there became very popular Global demands of wine and its
consumption shifted from countries like Italy or France to Argentina, Australia or Chile.
This sudden shift not only generated huge loss to the old countries, but also took away
the old heritage. The new comers with the use of technology and new methods of industry
handling dominated the wine market, resulting in a Global Wine war.
The following paper will analyze the resource based and the industrial based view of the
new countries in order to gain an insight of how they have been able to capture their market with
their resources.
Resource Based View:
It is, however, a clear fact that the new countries primarily took advantage of the
regulatory constraint, the traditional view of industry and the embedded tradition of the old wine
countries in gaining an upper hand in the competition of producing and marketing wine. The
resource based view strategy can be defined as the observation and analyzing of the possession
of the strategic resources by an organization that will help the organization to develop the
competitive advantages against the rivals in the industry. The new world started to possess more

2CASE STUDY
beneficial organizational resources that eventually helped them in being the dominant factor in
the competition.
The resource based analysis of the major new worlds in the wine markets can be done in order
to understand their advanatages:
1. Australia:
The heart of Australian organizations are innovation. The most valuable and rare factor of
the resources are that they are innovative and thus have been able to separate themselves
against the traditional world. Australia for the first time made the use of Drip irrigation
which made the large vineyards to have more advantages in watering. They also
innovated the use of screw caps instead of Cork screws (Anderson & Aryal, 2015). The
tangible resources for their wine Industry, the human resource are however, a bit costly.
However, the intangible resource which is the large vineyards are present in plenty in the
area. Australia has also a strong and valuable distribution system that accounts for the
growth of the wine industry. They encouraged to a large extent the growing of the
industry in the growing territories. Australia also started the use of purging method and
the innovations in the fertilizers to ensure that the grapes and the sugar retain their flavor.
The VRIO analysis of the resources of Australia thus can be:
Valuable- the innovations that they use and the vineyards that they posses are valuable
and costly since those are some of the indigenous technological innovations of the
country. These technologies have helped the wine industry to flourish. The labor cost is
however high which may not be valuable to the industry since any country can train their
labors and utilize them at a lower cost.