Global Wine War 2015: New World Versus Old

Global Wine War 2015: New World versus Old
[Name of the Writer]
[Name of the Institution]
[Date]
Global Wine War 2015: New World versus Old
Introduction
The Global Wine Wars: New World versus Old case study demonstrates how the evolution of the new World players in the recent times has resulted in the loss of significant market share of the old World players within the wine industry across the world. The old market players initially snickered at the novel as well as innovative techniques utilized by the new players including, South Africa, New Zealand, South America, United States and Australia; however, it quickly became apparent to them that these new entrants can pose a serious threat to the customary winemakers and their old techniques. The most noteworthy decline in exports was experienced by France, whereas the United Kingdom also lost its dominant share in the global market to the Australian players (Bartlett, 2009; Veseth, 2011).
Moreover, during 19th and early 20th century the established winemakers including France began to confront an assortment of issues like phylloxera that cause significant damage to the French vineyards; thereby, leading to declining in the wine supply while the demand continued to rise. In addition, other issues persist due to lack of control over the entire value chain, increase in tax as well as political barriers to production. At this stage, the New World players started to outshine the existing competitors in the global wine industry as they acquired several benefits in the form of suitable land which was relatively less expensive. Moreover, the same era witnessed significant advancements in the technology which empowered the new players in the global wine market to experiment their winemaking techniques and final products as noted by Black, (2011). These technological advancements resulted in the noticeably lesser production and distribution costs for the New World players in contrasts to the Old World players. In fact, the new entrants in the wine markets also controlled the whole value chain that enabled them to manage quality in a more effective manner. For paradigm, in the competition held in 1976, the quality of wine from California was ranked superior in contrast to France (Bartlett, 2009). This particular paper shed light on the “Global wine War” that initiated in 2015. It highlighted the issues confronted by both old World wine players and new World wine players and proposed suggestions accordingly.
Discussion
Issues and Opportunities
The global wine war among the Australia, France and United States resulted in an assortment of the issues for the three major players, and hence, each is now in search of an efficient strategic restructuring. For instance, the French wine industry witnessed issues because its wines were labeled too costly and at the same time the industry lacks product portfolio diversification. In addition, the winemakers in the country do not acquire innovative marketing strategies. Likewise, the cost of wine production is extremely high in the United States while the demand for the wine products has also lessened in the recent times. Furthermore, Black, (2011) and Eckersley, (2010) pointed out that Australia also confronted several...