Globalization is a phenomenon that has revolutionized the way in which competition and dynamics of all industries have changed. The effects of a globalized economic system have modified the way in which the wine industry functioned. There was a surprising drop in the consumption of wine of the traditional wine brewers between the years 1976 and 1990 by almost 25. This translates into significant drop in sales for the traditional wine industry that has several distributed strongholds across the globe.
The global consumption of wine was by no means decreasing rather there was an appreciation in the amount of wine being drunk worldwide. However, the major chunk of the expansive market was taken away by the new players in the industry namely Britain, Australia, New Zealand and South Africa. Though there was potentially nothing wrong in the manner in which the French produced wine, fact remained that the innovative ways of wine making were fast becoming popular amongst the wine consumers.
The French took great pride in the method of brewing their wine and thus were not willing to change the status quo by employing the latest techniques of wine brewing. This was particularly due to the It can be said that the French refused to accept the fact that the marketplace and demand for wine had changed. Dwelling on past pride and refusal to acknowledge the fact that the customers now had different tastes was a major flaw for the French. The same was the case with the German, Italian and Spanish firms that were not willing to change the taste of their wines by assessing the change in consumption and habits of the consumers over time. The major blow was to the French and British wine brewers who lost a great portion of their market share to the Australians and Kiwis owing to the latter satisfying the customer demand for new tastes and quality. It is true that AOC regulations hindered the use of innovative techniques for wine production in France, fact remains that the initial reactions of the giant bloc of breweries was cold and jest-like. Their belief was that their customers had a firm affliction to their traditional tastes and that the new entrants would soon go out of business (Barlett, Cornebise McLean, 2009). Though what happened was quite the opposite, the French and its neighboring wine breweries had an important lesson to learn from the incident.
The foremost lesson for the European brewing companies was to understand the fact that consumer tastes had changed. The traditional wine standards were no longer a constant for the wine consumers and the new entrants had brought in a wave of innovation in the method of preparing wine that the consumers enjoyed. The case depicts that the French wine makers considered their work as an art and thus there was little chance of blending the processes to match the competitors that had gained a strong hold of te market by 1990. In order to compete with the Kiwi and Australian wine makers, the European breweries needed to match the culture of innovation and understand the changes in habit and taste of the wine consumers.
The bottom line is that the French, Italian, Spanish and British wine makers needed to learn a lesson from the new entrants in the market rather than smirking with them. It is still possible for them to get back a part of the lost market share by following innovative practices in wine making that would make the wines more compatible with the tastes of the consumers something that is changing as rapidly as the innovation that is being done to keep up with the globalization effects of consumer change.
The global consumption of wine was by no means decreasing rather there was an appreciation in the amount of wine being drunk worldwide. However, the major chunk of the expansive market was taken away by the new players in the industry namely Britain, Australia, New Zealand and South Africa. Though there was potentially nothing wrong in the manner in which the French produced wine, fact remained that the innovative ways of wine making were fast becoming popular amongst the wine consumers.
The French took great pride in the method of brewing their wine and thus were not willing to change the status quo by employing the latest techniques of wine brewing. This was particularly due to the It can be said that the French refused to accept the fact that the marketplace and demand for wine had changed. Dwelling on past pride and refusal to acknowledge the fact that the customers now had different tastes was a major flaw for the French. The same was the case with the German, Italian and Spanish firms that were not willing to change the taste of their wines by assessing the change in consumption and habits of the consumers over time. The major blow was to the French and British wine brewers who lost a great portion of their market share to the Australians and Kiwis owing to the latter satisfying the customer demand for new tastes and quality. It is true that AOC regulations hindered the use of innovative techniques for wine production in France, fact remains that the initial reactions of the giant bloc of breweries was cold and jest-like. Their belief was that their customers had a firm affliction to their traditional tastes and that the new entrants would soon go out of business (Barlett, Cornebise McLean, 2009). Though what happened was quite the opposite, the French and its neighboring wine breweries had an important lesson to learn from the incident.
The foremost lesson for the European brewing companies was to understand the fact that consumer tastes had changed. The traditional wine standards were no longer a constant for the wine consumers and the new entrants had brought in a wave of innovation in the method of preparing wine that the consumers enjoyed. The case depicts that the French wine makers considered their work as an art and thus there was little chance of blending the processes to match the competitors that had gained a strong hold of te market by 1990. In order to compete with the Kiwi and Australian wine makers, the European breweries needed to match the culture of innovation and understand the changes in habit and taste of the wine consumers.
The bottom line is that the French, Italian, Spanish and British wine makers needed to learn a lesson from the new entrants in the market rather than smirking with them. It is still possible for them to get back a part of the lost market share by following innovative practices in wine making that would make the wines more compatible with the tastes of the consumers something that is changing as rapidly as the innovation that is being done to keep up with the globalization effects of consumer change.
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