Competitive Advantage of Wine Industry in France

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Competitive Advantage of Wine Industry in France

Résumé du document

According to Michael Porter, any economic analysis should consider non-quantifiable data. He criticizes the lack of comprehensiveness from the the majority of today's economists regarding the evaluation of competitiveness of industries (Porter, 1990). The Diamond Model of Michael Porter for the competitive advantage of nations offers a model that can help understand the comparative position of a nation in global competition. In this theory, if an industry is to be relevant at the international level, it must have at least three competitive advantages (Porter, 1990).

Contrary to what the dictionary says, wine isn't an "alcoholic drink that result from the fermentation of grapes". It is a very complex product, which results from a culture, a know-how and human implication. The aim of determining the competitive factors in the wine industry in France is to determine the key factors that established competitive advantage and the constraints that impacted negatively on the competitiveness of the wine industry (Porter, 1990).

Through this essay, we will analyze the French wine industry. Firstly, we present the industry followed by an analysis of determinants of national advantage thanks to Porter's Diamond.

Extraits

[...] Thus the market continues to decrease (including table wine and wine country). In general, France or the world, wine consumption rose slightly Doriane MANTEZ: 1015933 However, an effect of "fashion" seems to always work. A study of wine consumption (Sopexa) shows: Trends in selected countries of the world and the example of France remains strongly present in people's minds. Some examples: Chinese wine discovering According to Sopexa, the potential consumers in China are about 200 million people who are mainly in large coastal cities such as Beijing, Shanghai and Canton 9. [...]

[...] However, spirits greatly threaten the wine in relation to young people 18 to 25 who are targets of industrial beer and spirits. They have developed many flavoured beers or alcoholic drinks heavily sugared that meet a huge success with youth Doriane MANTEZ: 1015933 Environmental role Finally, the complete system of determinants of competitive advantage includes two further elements that are outside the diamond (Figure Porter p.127): chance and government .The role of Government The government plays an essential role in orchestrating these determinants that are positively or negatively influence through its policy-making and operational inputs. [...]

[...] RFI [Accessed 5.Jan. [...]

[...] Moreover, Government gives financial aid, grants to the vineyards so they can continue to develop Doriane MANTEZ: 1015933 II. Analysis of determinant of national advantage Factor conditions Factors of production are inputs necessary to compete in any industry” (Porter p.76). Porter moves beyond the simple factor approaches of other models (such as some used in economics) in a number of ways .Skilled Craftsmen French vineyard is a Roman monument, and which are best preserved on our soil” (Dion, 1959). These artisans that appoint winemakers: They are those who work the vineyard, exploits, which harvest the grapes. [...]

[...] But with the decline in consumption, the arrival of new producer countries and the education of the population to wine consumers have a very important power. Their purchase decision depends on their tastes that vary across countries, seasons, and culture .Consumers difficult and sophisticated The French consumer is renowned for its difficulties satisfaction, prompting industries such as wine has always moved forward. According to a recent study by the Office National Interprofessionnel des Vins (ONIVINS); wine drinkers are like most consumer goods and modern services: infidels. [...]