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.
[...] 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. The image of France is important and the Chinese are the French wines "good health", "rich flavour" and "natural". [...]
[...] In a context of increasing overall production of wine in the world, where France is a paradox and announced shortly be the necessity of a change in the way of producing, selling safely on the influence of drink Doriane MANTEZ: 1015933 Indeed, for that France preserve the leading position of the wine in the world. It is necessary that French winemakers adapte to the tastes and demands of consumers, but without compromising on quality and the notion of terroir on which the reputation of French wines. [...]
[...] This mass audience to which we belong (in addition Boromy to be categorized as a geek) cares little different fragrances that wine can have Doriane MANTEZ: 1015933 Related and supporting industries As with demand, there is a domestic focus in this determinant, which looks at presence in the nation” of suppliers and others who are internationally competitive (Porter p.100) .Suppliers who are powerful Buyers of large retailers have a very important power because the vast majority of wines are sold in supermarkets in the areas of consumption of the Old Continent. [...]
[...] In 2005 there were 472 different wine AOCs in France (INAO, 2005) Doriane MANTEZ: .Differentiation French wine market is a place of differentiation. Indeed, it exist several different kind of wine in the same industry: Table Wine: Wine only French marked "French table wine". It is generally branded. Wine Country: Wine table identified by its geographical origin. It must come from the production area that bears its name. Appellation d'Origine Contrôlée Wine from a particular area with many other restrictions, including grape varieties and winemaking methods. [...]
[...] With almost hectares under vine, (second behind Spain), France is a great wine country .Infrastructures For the winemaker, direct selling, which represents of the distribution of wine in France is a priority because it maintains contact with the customer and gives him a significant turnover. Mass distribution for its part assures 75% of sales and wine shops the rest being provided by the circuit CHR (Coffee, hotels and restaurants), mail or internet and export. All its types of organization have their schedules well-established infrastructure in France, which ensures quality and profitability Doriane MANTEZ: 1015933 Demand conditions According to Porter, the nature of home demand is the major factor influencing how companies perceive and respond to buyers' needs: “where foreign and home market needs diverge, signals from the home market usually dominate” (Porter p.87) .Demand that has a strong power Until the last thirty years, demand was outstripping supply; the power of customers was low. [...]
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