Global Wine Wars and New World Challenges - Essay Example

Introduction Wine has been processed and sold for many centuries. It has been noted that after some contrasting kind of developments in the traditional form of regulation of the traditional industry of the wines with the new one that is technology based as well as market oriented new world, new challenges emerged. The whole issue is a battle that was named "The Battle for Britain" which is the greatest exporter of modern wine as compared to the traditional exporter of wines, which is France. It is the competition between the two giants’ exporters of wine that brought rise to the current challenges for leadership in Australia, which was just a new comer in the market in the year 2001. The paper presents an analysis of the ways in which the new comers may be able to change the existing rules as far as the issues of competition are concerned in the global platform. It also deals with ways in which incumbents can be able to respond efficiently and effectively. Global wine wars: new world challenges Wine is one of the oldest existing commodities in the market in the world. Some of the old world dealers in wine include Italy, France, Spain and Germany while there are very many new emerging worlds which are also dealing with wine like Australia. The new emerging world has been forced to improve in some areas to be able to have a superior platform for competition with the old worlds in terms of resources as well as capabilities. This means that the new worlds have to take the responsibility of implementing some changes as well as opportunities in the wine industry (Geralyn, 78). This has also led to a number of challenges as well as impacts both formal and informal in the institutional environment. The impacts are mainly due to the differences that are emerging because of the fortunes contrasting of the old world and the new world in the procedures, capabilities and resources that are used to process the products. There has been a rise in the competition between the new wine producers and the old wine producers in the world. The old wine producers have been bound by important traditional practices, legislations of the European Union and regulations, which industrially regulate and which must be adhered to. On the other hand, the new wine producers are processing the wine in their own ways without having to follow the traditional processes. Due to the use of the new technologies and freedom of being exempted from the traditional and laid down legislations the new world wine producers like Australia, United States, South Africa and Chile are gaining popularity and are occupying the greatest portion of the market share. The new producers have also been able to enjoy the opportunity of innovation unlike the old wine producers (Keith & Hazel, 112). The new wine producers have not had a smooth run in their efforts to establish as popular wine producers until 1980’s when they were ready for competition with the old exporters of wine. It was until 2002 that the competition became very steep to a point of Australia being recognized as the best exporter of wine in the United Kingdom. One of the reasons as to why there has been a decline in the production of very good and high quantity of wine by the France is because there has been a decline in the estates where grapes are planted for the production of wine in the country. In addition, fragmentations of the gardens for other uses like building and factory constructions; there has been a decline in the quantity as well as the quality of the wine being produced by the old wine producers (Adam, 199). This is not the case with the new wine producers’ countries. This is because they have set apart large gardens for planting grapes for the production of wine. Apart form this, these new producing countries have adopted the culture of giving the first priorities to grapes plantation in terms of the agricultural care and resources need to produce quality grapes. Another important factor that has been the main cause for the decline in the production of wine by the old wine producers is the issue of poor infrastructure as well as the issue of tax systems due to the expenses incurred during the process of transportation. As a result, there are delays, expenses as well as spillage and spoilage on the process of transportation of the wine. This is then led to the decline in the production of wine in these places because people did not want to indulge in the business that is not yielding much profit. This kind of problem has been dealt with well by the new wine producers in the sense that they have tried to come up with better methods of wine processing like pasteurization as well as the use of glass bottles with stoppers mad of coke. This has ensured that their wine does not spoil easily and eased the means of transportation. The countries have also ensured that the grape vines are in the increase in their countries so that the production of wine could rise. The climate conditions also have been a favourable condition for the growth of grapes and there production in most of the new wine producing countries. As result, many of the people have taken into the culture of grape planting in the country as well as taking wine drinking as their culture hence, enhancing the increase in the production of the wine by the new producers (Evans & Perri, 107). Moreover, the abolishment of the old regulations concerning drinking in America, South Africa and Australia has led to a rise in the demand of wine as a drink by the citizens. As a result, the countries have adopted the culture of producing grapes and wine in large quantities. In the new worlds wine producers, the government has availed very good lands and at cheaper prices for all of the citizens interested in growing grapes. This has really acted as a boost for the high production of wine in these countries and of high quality. The new world wine producers are also practicing a high technology of production in terms of grape growing and the production of wine. A good example is in Australia where there is the use of drip irrigation, which was very instrumental in reducing the vintage variability and ensured increase or expansion of new regions for planting the grapes (Geralyn, 90). These new technologies that were in use by these new world wine producers have ensured there is a possibility of using specialized equipments like combined harvesters, mechanical harvesters and mechanical pruners. This ensured that the production was increased as compared to the traditional method of grape planting. The use of equipments to prune as well as the application of fertilizers to the grapes has also ensured that the quality of grapes has been increased. Another advantage the new world wine producers have had as compared to the old world wine producers is, they have been able to be very consistence in having their wine in the market throughout since the production of grapes is never out of season. The new world wine producers have also taken the risk of breaking their traditional marketing norms and tradition. There has also been a great improvement in terms of the innovations in packaging and marketing. Innovations have made wines be packaged in boxes by the new world wine producers as compared to the old wine world producers who used bottles. It should be noted that the changes in the institutions like the governmental laws and regulation whereby in most countries it has become a culture to have wine on the table during a meal, has greatly provided an opportunity for the new world wine producing world to export their wine. Wine is now being processed through better methods as well as packaged and transported in better ways that are very favourable to the customers. This has really presented the new world wine-producing world with better opportunities to export this sis where the issue of formal and informal institutions comes. Conclusion In conclusion, it is very evident that the new world wine producers have been very instrumental in ensuring that wine is available to people in the whole world for consumption at all times. Moreover, institutions have played a major role in ensuring that wine is easily available to the consumers and at the same time, ensuring the wine is of high quality. In addition, some of the governments in the new world wine producing countries have ended up putting so much efforts and attention to the grape and wine production. Generally, the new wine producers have become more competitive compared to traditional wine makers. Reference Adam, Coutney. Wine making journal for the homemade wine maker. Philadelphia: Jessica Kingsley Publishers, 2006. Evans, Crone & Perri George. Food and wine tourism. New York: NYU Press, 2010 Geralyn, Brostrom. The business of wine : an encyclopedia. Denver: Rowman & Littlefield, 2008. Keith,Grainger &Hazel Tattersall. Wine production: vine to bottle. California: ABC-CLIO, 2005. Kym, Anderson. The world’s wine markets: globalization at work. Toronto: University of Toronto Press, 2004. Thompson, John. & Martin, Francis. Strategic management: awareness and change (5th Ed.). California: Cengage Learning EMEA, 2005. . Read More