The Competitive Advantage Of The Wine Industry - 1777 Words

In the world of increasingly global competition every nation want to prove its product as the best in the world. This phenomenon is called the competitive advantage of the nation, this can only be created and sustained by immense sense of product knowledge, competition domestically and internationally. Wine industry is the one which faces the competition between the traditional wine makers of the old world and the sophisticated wine producers of the New world. The healthy competition among the producers and suppliers makes the consumers successful by providing the best quality. The Old world refereed here constitutes the countries in Europe specifically France, Italy and Spain and the New world refers to US, Chile, Argentina and Australia. France’s dominance of the wine industry has increasingly come under threat from emerging wine producers who are more aggressive in marketing their product i n the markets previously dominated by France. Although France is still the world’s largest wine producer, it has seen a substantial decline in its global sales over the last one decade arising from a number of factors; some of them internal and others which are external. In this case study we will be discussing about the Diamond of National advantage and how the determinants creates the national environment in which the companies compete with respect to the Wine industry. TheShow MoreRelatedInternational Trade : A Competitive Advantage1261 Words   |  6 Pagescomparative advantage exist in the factor endowments that a country may be fortunate enough to inherit. Factor endowments include land, natural resources, labor, and the size of the local population. Michael E. Porter claimed that a nation can create new advanced factor endowments such as skilled labor, a strong technology and knowledge base, government support, and culture. 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