New World vs. Old Essay Example for Free

advanced World vs. Old Essay global Wine War 2009 New World versus Old 1. How were the French suitable to dominate the worldwide booze trade for centuries? What sources of competitive advantage did they develop to support their exports? The wine-coloured production of France goes all the way dressing to be part of the first niche foodstuff for premium wine. Factor conditions of France, such as come to and climate, were well suited for wine-production compared to other European countries.Since the early 19th century cross-border shipping was very expensive, France was able to cluster the related and supporting industries of wine production within their domestic borders. As a result, France increase its competitive advantage throughout other sources without much impact from other countries. As the industry became Frances second largest export, side by side with a culture of rich food, the ingest conditions got affected, as consumers were expecting a certain quality.The Fr ench government provided the classification systems, which increased the rivalry and domestic competitiveness and raised the entree barriers so that entry of foreign competition was kept at a minimum. 2. Given the longstanding effectiveness of Old World wine producers, how were the New World producers, such as the Australians, able to expand their market share so rapidly in the 1990s?As postwar increased demand for wine rapidly, factor conditions of the New World producers, such as widely available suitable land and it being less expensive, do it possible to meet the new demand and boosted the New World industry. The new demand conditions demanded higher quality wines and as new generations were natural, the consumers got more price-conscious and convenient oriented. New World producers met these changes in demands by introducing a consummate(a)ly new firm strategy, structure, and rivalry compared to the Old World producers, who were constrained by tradition. change was the key word in the New World strategy suddenly, mechanical technology reduced boil cost and pushed down prices, packaging innovations made distribution easier and provided convenience to the consumers, and technology ensured vintage-to-vintage consistency etc. As well, branding and marketing skills were performed on the basis of vintage-to-vintage consistency, which gave the consumers further preferences and strengthened the position of the New World producers globally. This made them capable at expanding even more rapidly.The New World producers changed the traditional patterns of related and supporting industries, which use to being long value-chains, as the big producers now sustainled the full value chain, able to extract margins and control quality at every level. The size now gave them bargaining power a power, which made them demand a strong grip on the importing countries. The New World producers had created a strong advance(a) company culture a culture that could easily adap t to the changes of consumer culture and government regulations.New generations were born and so was the rise of fashion in a completely different culture of lighter consumption. The New World producers responded to the swings of fashion by taking advantage of the factor conditions much capacity and regulatory freedom. This was the complete opposite to what the Old World producers were able to do still constrained by the long archives of wine-making tradition and lack of innovation. By that, the New World producers were always a few steps beforehand of the Old World producers when the global patterns changed.