rewrite

Who will win the global wine industry battle?

In my view Europe will eventually win the battle for global wine industry. This is because, according to the international organization of vine and wine, in the year 2015, Europe contained the top three wine producers in the globe. These countries included Italy, France and Spain respectively. In 2013, according to the organization, Europe was also the leading wine producer whereby Italy, Spain and France were top three wine producers with a cumulative total of 141471 hectoliters of wine. Europe has been the top leading wine producers for the past five years.

The major competitors in the wine industry

The major competitors for the global wine industry is Italy, France and Spain. In 2011, France was the leading wine producer in the globe producing a total 50,757 hectoliters according to the international organization of vine and wine. It was followed by Italy with a total of 42,772 hectoliters and then Spain with a total of 33,397 hectoliters. These three countries have continued to be the leading wine producers till 2015 whereby they produced a cumulative total of141471 hectoliters of wine.

Factors making a competitor the market leader

There are various factors that make a competitor the market leader in its course of business. In the wine industry, one of these factors include presence of adequate resources. Europe has vast fields for wine production. The second factors is consumer consumption. Majority of wine drinkers prefer wine from France, Italy and Spain due to its uniqueness and quality. Additionally, market branding is another factor that can be attributed to making a competitor the market leader. European wine is always branded the best due to its unique quality. Being a first mover ensures that your commodity has higher sales and productivity.

Competitive life cycle

In the life cycle of wine producers, the wine is harvested from the vine fields whereby it is manufactured to produce wine in accordance to the various wine flavors produced by the companies. In this case, the wine production is conducted according to the present market demands.

Offensive and defensive strategies used by Chinese wine producers

Offensive strategies adopted by Chinese wine producers include frontal attack where they produce similar products at lower prices and the bypass attack whereby they develop new technologies for wine production and making. Some of the defensive strategies used by Chinese wine producers is the mass production of quality wine at relatively cheaper prices as compared to the market leaders. Other defensive strategies they use include mobile defense and flanking defense. Under these strategies the Chinese wine producers continue to make new product introduction while at the same time defending the market share by entering new markets.

Features Chinese wine producers ought to incorporate

In my view some of the features that the Chinese ought to adopt wine producers ought to adopt is making a unique brand that can rival the market leaders and other competitors as opposed to using the frontal attack strategy where they produce similar products at lower prices. Even though this strategy may work, it would not make China the leading market leader. However, China’s aspirations of becoming global leader in my view is well timed, due to the vast technological innovations in the wine industry and the increasing demand for wine across the globe.

Assignment

Perfect competition – An example of perfect competition is the Agricultural markets. In agricultural markets, there are various sellers who sell the same products in the same market.

Monopolistic competition – Restaurants are perfect example of monopolistic market competition whereby each restaurant offers something different from the others which has its own uniqueness but in essence are all vying for the same customers.

Oligopoly competition – An acute example of oligopoly market is the auto industry whereby for example in the US, the leading auto manufacturers is Ford, GMC and Chrysler.

Monopoly – An example of monopoly market in the US is the utilities industry. For example, water providers, electricity and telecommunications are often granted exclusive rights by local governments for their services.