scholarly journals Competitive Strategies for Wine Cooperatives in the German Wine Industry

2020 ◽  
Vol 9 (2) ◽  
pp. 83-98
Author(s):  
Barbara Richter ◽  
Jon Hanf

The wine industry is significantly affected by globalization and changes in consumption habits and shifts in lifestyle, which lead to changes in the market environment and intensity of competition in the wine markets. Overall, wine cooperatives have a market share of more than 40 % in Europe. In Germany, they account for around one third of the total wine production. The decreasing number of wine cooperatives and their members leads to the assumption that wine cooperatives have difficulties adapting to the different market environment and though, need to select and implement competitive strategies. The aim of this paper is to identify and develop competitive strategies for wine cooperatives in the German wine industry. Therefore, the external forces affecting competitive rivalry in the wine industry are being evaluated for wine cooperatives in Germany. A qualitative approach has been applied including in-depth interviews with managing directors and chairmen of the board (n=15). Data were transcribed verbatim and content analysed. Results showed that the intensity of rivalry among existing competitors is high. Bargaining power of wine cooperatives towards buyers and suppliers strongly depends on their size. However, generally the bargaining power of retailers is high, although this depends on the retail channel (discounters, food retail, specialized retail, specialized wholesale, gastronomy). Five main strategy dimensions emerged: (1) the cost leadership and cost focus strategy, (2) the differentiation and differentiation focus strategy, (3) collaboration among producers, (4) offering additional services, and (5) options for improved membership relations and increased youth involvement.

2003 ◽  
Vol 22 (1) ◽  
pp. 31-43
Author(s):  
I. S. Pretorius

The widening gap between wine production and wine consumption, the shift of consumer preferences away from basic commodity wine to top quality wine, and the gruelling competition brought about by economic globalisation call for a total revolution in  the magical world of wine. In the process of transforming the wine industry from a production-driven industry to a market-orientated enterprise, there is an increasing dependence on, amongst others, biotechnological innovation to launch the wine industry with a quantum leap across the formidable market challenges of the 21st century. Market-orientated designer grape cultivars and wine yeast strains are currently being genetically programmed with surgical precision for the cost-competitive production of high quality grapes and wine with relatively minimal resource inputs and a low environmental impact. With regard to Grapevine Biotechnology, this entails the establishment of stress tolerant and disease resistant varieties of Vitis vinifera with increased productivity, efficiency, sustainability and environmental friendliness, especially regarding improved pest and disease control, water use efficiency and grape quality. With regard to Wine Yeast Biotechnology, the emphasis is on the development of Saccharomyces cerevisiae strains with improved fermentation, processing and biopreservation abilities, and capacities for an increase in the wholesomeness and sensory quality of wine. The successful commercialisation of transgenic grape cultivars and wine yeasts depends on a number of scientific, technical, safety, ethical, legal, economic and marketing factors, and it therefore will be unwise to entertain high expectations in the short term. However, in the light of the phenomenal potential advantages of tailor-made grape varieties and yeast strains, it would be equally self-destructive in the long term if this strategically important “life insurance policy” is not taken out by the wine industry. This overview highlights the most important examples of the way in which V. vinifera grape varieties and S. cerevisiae wine yeast strains are currently being designed with surgical precision on the basis of market demand for the cost-effective, sustainable and environmentally friendly production of healthy, top quality grapes and wine.


Author(s):  
Şeyma Gün Eroğlu ◽  
Ayşe İrmiş

Organizations apply two basic competitive strategies in general. These are the cost leadership strategy and the differentiation strategy. The application of any of the mentioned strategies by focusing on a smaller field in the market is called a focus strategy. Companies gain value in the eyes of customer with the strategy they choose. The aim of this study is to analyze the competitive strategies applied by the enterprises and the results of these strategies. A semi-configured interview on the entrepreneurs of two firms which open to a wider market from local market in Denizli with their own brands, was conducted. The first enterprise, which has been maintaining its existence for 80 years and has many branches in the different provinces, is a firm producing sugar and sugar products (Firm A). The second, which has been maintaining its existence for 84 years and has branches in close neighbor cities and provinces, is a firm producing soft drinks (Firm B). The common feature of both firms is that they keep their local characteristics and take their competitive power from the local people. In the research, the competitive strategies of entrepreneurs have been defined and analyzed by benefiting from the entrepreneurship stories that have been brought up to the present day. It was concluded that firm A applied differentiation strategy in the product, production process, and market, while firm B differentiated in the production process without any differentiation in the product and used the focus strategy in the market.


Author(s):  
Norin Arshed ◽  
Jaydeep Pancholi

Competition is what keeps organizations and industries alive. Harvard Business School Professor, Michael Porter, was keen to understand the drivers of success in commercial organizations. His research indicated that industry structure mattered more than individual firm behaviour and his Five Forces model (1979) offers his explanation of the sources of competition at industry level. The model is based on the theory of determining the competitive intensity and attractiveness of a market. The five forces within the model include: competitive rivalry, threat of new entry, supplier power, buyer power, and threat of substitution. The model has been widely used by firms to analyse the external environment and specific external forces like competition, government policies, and social and cultural forces (Vining, 2011). Furthermore, to overcome such fierce competition created by the Five Forces model, and to ensure successful survival, Porter (1985) also introduced competitive strategies to gain a competitive advantage. By combining price and market type, Porter suggests these competitive strategies: cost leadership, differentiation, and market segmentation (or focus) to enable a competitive environment to prosper. This chapter concentrates on establishing and understanding the Five Forces model and the generic strategies.


Molecules ◽  
2021 ◽  
Vol 26 (6) ◽  
pp. 1672
Author(s):  
Ysadora A. Mirabelli-Montan ◽  
Matteo Marangon ◽  
Antonio Graça ◽  
Christine M. Mayr Marangon ◽  
Kerry L. Wilkinson

Smoke taint has become a prominent issue for the global wine industry as climate change continues to impact the length and extremity of fire seasons around the world. Although the issue has prompted a surge in research on the subject in recent years, no singular solution has yet been identified that is capable of maintaining the quality of wine made from smoke-affected grapes. In this review, we summarize the main research on smoke taint, the key discoveries, as well as the prevailing uncertainties. We also examine methods for mitigating smoke taint in the vineyard, in the winery, and post production. We assess the effectiveness of remediation methods (proposed and actual) based on available research. Our findings are in agreement with previous studies, suggesting that the most viable remedies for smoke taint are still the commercially available activated carbon fining and reverse osmosis treatments, but that the quality of the final treated wines is fundamentally dependent on the initial severity of the taint. In this review, suggestions for future studies are introduced for improving our understanding of methods that have thus far only been preliminarily investigated. We select regions that have already been subjected to severe wildfires, and therefore subjected to smoke taint (particularly Australia and California) as a case study to inform other wine-producing countries that will likely be impacted in the future and suggest specific data collection and policy implementation actions that should be taken, even in countries that have not yet been impacted by smoke taint. Ultimately, we streamline the available information on the topic of smoke taint, apply it to a global perspective that considers the various stakeholders involved, and provide a launching point for further research on the topic.


Author(s):  
Donato Romano ◽  
Benedetto Rocchi ◽  
Ahmad Sadiddin ◽  
Gianluca Stefani ◽  
Raffaella Zucaro ◽  
...  

AbstractThe objective of this paper is twofold: firstly, it analyzes the evolution of frauds in the Italian wine value chain over the period 2007–2015, and then, using a properly disaggregated social accounting matrix (SAM) of the Italian economy, it simulates the impact of wine frauds on the national economy in terms of growth, employment, value added and income. The wine industry is the sector most exposed to frauds within the Italian agro-food system accounting for 88% of total value of seized agro-food outputs. Most irregularities (95%) are made by only three agents, specifically individual wineries, bottlers-wholesalers and retailers. We estimated industry-specific SAM multipliers to assess the share of the Italian economy depending on irregular wine production. These activities account for 11.5% of specialized permanent crop farms output and over 25% of wine industry output. This is a sign of vulnerability of the wine industry: should a food scandal/scare determine a drop in consumers’ demand, the negative effect on production activities of these sectors may be large. The SAM was also used to perform an impact analysis adopting a counterfactual approach. Results show a slightly positive increase of value added (6 million euro) along with an overall decrease in the activity level (an output loss of 406 million euro and more than six thousand full time jobs lost). This contractionary effect can be explained with fraud rents. Indeed, the extra-profits from frauds do not activate the economy circular flow as most of them leak out to exogenous accounts such as the public administration and the rest of the world.


2018 ◽  
Vol 19 (2) ◽  
pp. 207
Author(s):  
Thomas Quirante ◽  
Yann Ledoux ◽  
Patrick Sebastian

In recent years, flash evaporation processes have received an increased attention in the wine industry for must concentration applications. Specific constraints related to the wine industry area had lead to many improvements of flash evaporators initially designed for seawater desalination. In particular the quality of the vintage, the transportability of the system and the environmental impact are of main interest. Moreover, the preliminary design of such systems must also consider robustness criteria. Obviously, variations of temperatures and flow rates of liquids at the inlet of the process can dramatically impact the quality of the product at the system outlet. In particular, deviations from the target values of temperature and alcoholic volume fraction can lead to a severe degradation of the vintage. As it is common in product design to have multiple performance measures, the robust design problem is addressed using a multi-objective approach. A trade-offs is introduced between two main design objectives: (i) the improvement in overall performance (product quality, transportability, environmental impact and costs) and (ii) the lowering of the sensitivity of the product quality under uncertainty. These main objectives are related to several elementary objectives corresponding to design criteria and a preference aggregation method is used to formulate the two different design objectives. Objectives are linked to weighting parameters values equivalent to priority levels. The selection of the most preferred design solution is discussed according to different trade-off strategies. The generation of the Pareto set is addressed by the non dominated sorting genetic algorithm NGSAII. From computing results, our recommendations concern the compromise between performance and robustness of flash evaporators. In this context, the final alcoholic volume fraction of the wine is the most sensitive parameter, which justify to maintain a high value of evaporative capacity when designing this type of system.


2014 ◽  
pp. 119-123
Author(s):  
Klára Törökné Kiss

Hungarian wine is not in such a bad position as it is considered. We have outstanding specialists and the country’s natural conditions are also proper. In Hungary, there are wine production and wine consumption has a major traditions. The role of marketing in our wine industry is growing more and more, and this trend is expected to continue in the future. The development of tourism in wine-growing regions and advertising would considerably promote the popularity of Hungarian wine.


Author(s):  
Molly M. Melin

The Building and Breaking of Peace considers the role of corporate firms in building peaceful societies. Examining the corporate motives for peacebuilding and then the implications of these activities for preventing violence and conflict resolution creates a holistic picture of the peace and conflict process. The book examines variation in corporate engagement as a product of corporate culture and shifts in government capacity, as well as threats to the ability to conduct business. Corporations engage in peacebuilding when there is a gap in the state’s capacity to enforce laws creating the demand for engagement but when there is stability that enables firms to supply peacebuilding. The book then considers the implications of corporate engagement for preventing and ending violence. Building on the rational choice theory of civil war and drawing from business research, The Building and Breaking of Peace examines the role of corporate firms in building peaceful societies. While firms are uniquely situated in their ability to raise the cost of violence, an active private sector acts as an additional veto player in the bargaining process, making it significantly harder to reach an agreement. The findings suggest that corporations help to prevent violence but not resolve it. These arguments are tested on original cross-national data of peacebuilding efforts by firms in Latin America, the Middle East, and Africa from 2000 to 2018 and in-depth case analyses of corporate actions and outcomes in Colombia, Northern Ireland, and Tunisia.


2021 ◽  
Author(s):  
Laura Massano ◽  
Giorgia Fosser ◽  
Marco Gaetani

<p>In Italy the wine industry is an economic asset representing the 8% of the annual turnover of the Food & Beverage sector, according to Unicredit Industry Book 2019. Viticulture is strongly influenced by weather and climate, and winegrowers in Europe have already experienced the impact of climate change in terms of more frequent drought periods, warmer and longer growing seasons and an increased frequency of weather extremes. These changes impact on both yield production and wine quality.</p><p>Our study aims to understand the impact of climate change on wine production, to estimate the risks associated with climate factors and to suggest appropriate adaptation measurement. The weather variables that most influence grape growth are: temperature, precipitation and evapotranspiration. Starting for these variables we calculate a range of bioclimatic indices, selected following the International Organisation of Vine and Wine Guidelines (OIV), and correlate these with wine productivity data. According to the values of different indices it is possible to determine the more suitable areas for wine production, where we expect higher productivity, although the climate is not the only factor influencing yield.</p><p>Using the convection-permitting models (CPMs – 2.2 horizontal resolution) we investigate how the bioclimatic indices changed in the last 20 years, and the impact of this change on grapes productivity. We look at possible climate trends and at the variation in the frequency distribution of extreme weather events. The CPMs are likely the best available option for this kind of impact studies since they allow a better representation of surface and orography field, explicitly resolve deep convection and show an improved representation of extremes events. In our study, we compare CPMs with regional climate models (RCMs – 12 km horizontal resolution) to evaluate the possible added value of high resolution models for impact studies. To compare models' output to observation the same analysis it carried out using E-OBS dataset.</p><p>Through our impact study, we aim to provide a tool that winegrower and stakeholders involved in the wine business can use to make their activities more sustainable and more resilient to climate change.</p>


2020 ◽  
pp. 178-207
Author(s):  
Susan North

The transformation of flat linen textiles to underwear is described in Chapter 8. The cost of linen and the need to own as much underclothes and accessories as possible to maintain standards of propriety forced a strict economy on making these garments. All underwent the rigours of early modern laundry and needed to be firmly sewn together, yet finely enough to be worn comfortably under other clothing. Very little literature in the early modern period documents these processes, therefore, reconstruction is the primary research tool. The exercise of remaking linen shirts and shifts highlights the seamstress’s skills and knowledge, and emphasizes what impact different qualities of linen would have on the durability of the finished garments and cost of their making. How shirts and shifts could be ‘ready-made’ is also explored.


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