Global Wine Wars 2009

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Gabriel Santana Dr. Roney MGT 405 Case Report Global Wine Wars Case Synopsis In this case, the main players in Global Wine Wars are the Old World countries (Italy, France, and Spain) versus the New World countries (United States, Australia, and Chile. The wine market has been proved to be a very profitable market as the Old World countries and the New World countries battle for a share of the $230 billion global wine market. We also notice that the Old World countries found themselves constrained by restrictive industry regulations because a lot of new technologies were forbidden, as it follows: The case opens with a brief history of the industry, outlining the traditional methods of production and distribution as well as the regulation that characterized the industry’s development in the Old World in the nineteenth century. Then it focuses on how the industry emerged in the New World countries. As a response for the growing demand, New World vineyards developed different production methods involving new technologies and reinventing the marketing model. Such new technologies include: * Controlled irrigation; * Mechanical harvesters and night harvesting; * Reverse Osmosis; * Fermentation in computer-controlled tanks (instead of the traditional oak barrels); The New World countries were a lot more flexible with such regulations, which gave them an incisive advantage in the last decade in joining the Global Wine Wars they focused on labeling their wine bottles by the kind of grape used, instead of by the region where it comes from (Old World countries). New World countries then realized they could compete in the global wine market when, in 1976, a wine from California was judged to be superior to their French counterparts. This was a watershed in the wine industry. Then the project focuses on the growing concurrence between the two

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