Analysis of the Global Wine War 2015: Competition and Strategies

This report provides a comprehensive analysis of the Global Wine War in 2015, examining the competitive landscape of the global wine industry. It begins by discussing the historical dominance of French wines, attributing their success to favorable climatic and topographical features, early adoption of modern production techniques, and strategic marketing. The report then offers advice to the Australian Minister of Agriculture on leveraging opportunities within the Chinese market, emphasizing the importance of building strong relationships and understanding market dynamics. Furthermore, it provides recommendations to the Australian Wine Association and individual vineyard owners in Barossa, suggesting strategies to enhance brand perception, reduce production costs, and expand market reach, particularly in Asia. The report utilizes multiple references to support its claims, offering a well-researched overview of the global wine industry and its key players.

Global Wine War 2015 1
Global Wine War 2015
By (Student’s Name)
Course
Professor
Institution
City and State
Date of Submission

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Global Wine War 2015
Question one.
During Christian period, monasteries and liturgies used wines in their services in which
they began planting built wineries and vines. The noble Europeans also invested in planting
vineyards as a way of creating competition disparity of wines that they presented to their
tables such as the market for premium wine and even for prestige purposes (Bartlett 2009, p.
20). The producers of French wine remained dominant competitors because of the following
reasons. First, France possessed climatic and topographical features that were perfect in
producing wines that are balanced. Since France is located in middle Europe culture it had a
favourable soil condition and climate to harvest grapes through this, it accumulated first-
mover benefit and maintained its location as the leading competitor in the wine industry
worldwide.
Secondly, French applied the advanced modernizations such as quantity manufacture
of the glass bottle with cork stoppers and pasteurization. Such innovations improved the
longevity and strength of the wine and also made wine transportation possible to far distances
which finally led to the emergence of the international wine market (Kierath & Wang 2013,
p.78). Lastly, French emerged as the first market with high-quality wine; this made French
market to advance its experience. Specifically, the "negociants," who marketed wine between
France and other regions created an effect of word of mouth, thus helped to increase the
dominance and the repute of wines from France (Raikes, Friis &Ponte 200, p. 390).
The competitive advantage that French wine industry experienced emerged from their
ability to develop strategies that helped sustain their exports with regards to the tastes of
wines and keenness to French culture of producing wines which they maintained. The other
advantages rose from the old, artistic talents and proficiency in the wine production that was
strategically located in the regions with high markets demands like England. The aspects of
vulnerability in the industry of French wine include the crumbling in the wine production and
the vineyards, increase in the price of vineyard per acre and complexity in sales and
production systems (Trott &Hartmann 2009, p. 718 ).

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Question two
Advice to Australian Agriculture Minister
China is known as one of the global producers of grains and other goods from the
agricultural sector. It is the second largest importer of agricultural products in the world, and
also the seventh largest exporter globally and this trend places china to a stronger important
position regarding its agricultural area (Chen, Yang & Findlay 2008, p.84). I believe the
Australian minister of Agriculture should ensure there is a good relationship with the Chinese
government since there are opportunities and techniques that Australia can utilize in the
Chinese market to help them incline to the global agricultural ladder that is similar to China.
These opportunities include such things as permanent supply contracts with Chinese
initiatives along the agribusiness segment, training and also education.
There are chances for industries to supply their products along with their value chains
entirely to the Chinese markets since the market for agricultural products in China are
subjected to government initiatives (Luk, Chen & Coombes 2013, p.13). The Australian
business faces uncertainties such as of the market convenience, the issues of contamination
uncertainties in custom endorsements and trials and also the supervisory amendments which
may be resolved through investing in the Chinese market. I think the Australian minister of
Agriculture should work together with the authorities in China to discuss the solutions for
convenience market entrance and the removal of the barriers with no tariffs since it which
help sustain the Australian businesses to a profitable level.
The Australian minister of agriculture should also look into the Chinese market to
understand the various aspects such as drivers of customers’ decisions, the influences of
costs and the role of the government-owned entities as well as the state and local differences.
This is because there are a vast number of possible consumers of the agribusiness products
and services that possess a diverse level of complexity (Yussefi 2010). The ministry of
agriculture should adopt measures that will spearhead their success in business, for instance,
ensuring the protection of their intellectual property privileges. They should also advance
production information and profiles of companies in Chinese to help increase their customer
base. The ministry should as well initiate success further through understanding the
regulations and procedures involved during importation of their products and appoint

Global Wine War 2015 4
distributors or get their marketing crew in China to ensure the set goals are achieved. The
industries in Australia in conjunction with a business association in China office should also
offer market support and advice to the wine industry of Australia as this will initiate success
motivation to the wine producers.
Advice to Australian Wine Association and a Mid-Sized Vineyard Owner In Barossa
The wine industry of Australian Association seems to be an industry that is well
structured through their strategic mission and vision. Producers of the Australian wine have
been successful steadily for several years since they have attained the goal of being the most
profitable and influential branded wines supplier globally by the year 2025 (Bruwer & Reid
2002, p.217). This capacity is steered by their high exporting rates that appear to be
achieving their set goals. However, the industry faces the problem of brand and pricing in
which it is mostly branded as jolly and economical. Thinking about the shooting prices in the
production of wine in Australia, the amount and image are crucial setbacks in the industry of
Australian wines because they are losing the competitive advantage of the truncated price.
I believe both the various individual wine producers and the well-regarded vineyard in
Barossa, southern Australia should divert their emphasis to improving the perception of the
quality of their wines and put more investment in the international market promotions to be
explored by the global celebrities. They can also employ the use of the upscale eateries to
retail their goods and also the luxury publications to offer their ads. Additionally, the individual
producers should take part in the venture of amplifying the brand of the Australian wine
globally (Nipe et al., 2010). Moreover, wine producers should help in getting alternative ways
to lessen production cost while aggregating efficiency. They should research ways of
producing high-quality wine like the French wines. Finally, the producers should not only
focus on the United States and United Kingdom markets but should also conduct business
with the markets in Asia and China.

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References
Bartlett, C.A., 2009. Global wine war 2009: New world versus old (pp. 1-23). Harvard
Business School.
Bruwer, J., Li, E. and Reid, M., 2002. Segmentation of the Australian wine market using
a wine-related lifestyle approach. Journal of wine research, 13(3), pp.217-242.
Chen, C., Yang, J. and Findlay, C., 2008. Measuring the effect of food safety standards
on China’s agricultural exports. Review of World Economics, 144(1), pp.83-106.
Kierath, T. and Wang, C., 2013. The global wine industry. The global wine industry.
Australie: Morgan Stanley Research, p.78.
Luk, S.T., Chen, I.S.N. and Coombes, J., 2013. Skyworth TV: channel dynamics and
growth in China's rural market. Emerald Emerging Markets Case Studies, 3(4), pp.1-
13.
Nipe, A., York, A., Hogan, D., Faull, J. and Baki, Y., 2010. The South Australi Wine
Cluster.
Raikes, P., Friis Jensen, M. and Ponte, S., 2000. Global commodity chain analysis and
the French filière approach: comparison and critique. Economy and society, 29(3),
pp.390-417.
Trott, P. and Hartmann, D.A.P., 2009. Why'open innovation'is old wine in new
bottles. International Journal of Innovation Management, 13(04), pp.715-736.
Yussefi, M., 2010. The world of organic agriculture: statistics and emerging trends 2008.
Earthscan.