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Assignment | International Business (Doc)

   

Added on  2020-03-23

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Running Head: INTERNATIONAL BUSINESS 1International BusinessNameInstitution
Assignment | International Business (Doc)_1

INTERNATIONAL BUSINESS 2Answer 1There is a stiff competition in the wine market with the old and new world trying all the best to get a share of the market. Both have competitive advantages and disadvantages due to different factors like experience, new advancements and location as well. The old world has some competitive advantages that they have earned over the centuries of wine production like the strong reputation of their products[ CITATION Mah01 \l 1033 ]. The AOC system promotes their quality and sophisticated wines, and due to the high domestic consumption, they make the most top sales. However, they are disadvantaged in such a way that they do not create a variety of tastes nor use the new technological tools and thereby lag behind regarding their economies of scale. The AOC system is also a liability in some cases as it makes their vineyards more vulnerable to unfavorable weather conditions while new consumers have a hard time identifying their products due to sophistication and lack of market knowledge[ CITATION Jin09 \l 1033 ]. The new world vineyards, on the other hand, have the advantage of new technology which reduces the cost of labor as well as improving quality of their wines. They have also managed to mix different varieties to their consumers and adopted marketing strategies like branding which enables for easier identification of their products by consumers[ CITATION And04 \l 1033 ]. There are however some disadvantages like their recent presence in the market which cannot be compared with the experience that French wineries have gained over the centuries[ CITATION Mah01 \l 1033 ]. They also tend to focus more on differentiation and branding and less on quality which reduces their prices in the market.
Assignment | International Business (Doc)_2

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