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Differentiation in the wine industry: An Australian success story Case Study

What other reasons might account for the success of Australian wines?

The Australian wine seems to be dominating the market of wine in Europe by beating the wine of France and other European countries. It started striking the wine market in the UK in 1990, however, the wineries were still of the belief that they were going to get back their success as they have reigned the market for so long. It is also reported that the Australian Wine producer got 23% of the US import order and within the passage of last year, this percentage has grown to 40% of the US import. Moreover, it is expected that this ratio will be growing to 50% as it will be one of the fastest growing in the wine domain. The market leaders of industries in the US have been quite depressed with the increasing sales of the Australian wine, however, they seem to be putting their efforts in order to regain success of their industries.

The Australian companies have been focusing on the quality of grapes moreover they are concerned with maintaining relations with the grapes providers. The companies have been getting grapes at a lower price as compared to the other, which helps in offering lower prices for the best quality wine. Another reason for the success is that they never compromise over the quality of the wine, the Australian wine quality will always be same if it is purchased from different regions and locations while French wines have been victimized of different qualities at different regions and locations. Where the other producers are lowering the prices, Australian wine producers have also reduced the prices so that more and more customers they can get. The other reason is that the Australian company’s strategic orientation. They are proactive in their strategic direction that is why it helps them to grow and make an increase in their export. There is quite an innovation in the Australian industry as well that helps the manager in making innovation in this industry and experiment new flavors rather than following the traditions that have been kept for hundreds of years. The collaboration of wine producers with other producers in the same region or the same country is very important and is testified with more than 76% managers of the same industry.

What would you advise French wine producers to do to counter the Australian success?

As far as the business of is concerned, the customers are always looking for a good taste and quality that they can find anywhere under the label of the same brand name. French wine has been dominated the market for a long time, however, there were certain reasons that the dominance of the wine industry did not last for so long. One of the biggest reason for this fall was the inconsistency in the taste and quality of the French wine. The second step that the French winemakers should take in order to dominate in the market and outrun Australian wine in the market is by making their orientation in the market and get more concerned about its competitors and focus on what the customers are asking and expecting from them. The French winemakers can a lot better in this industry if they also follow the national policies of the industries and let the customers reach with the best quality. It is the first step that the French producers should take in order to counter the success of Australian vines. The quality of French wine is also good however there is no consistency in its quality and taste.

French producers should also follow the policies of industry and work according to the plan as suggested. They should also focus on the strategic management of the production so that they can be proved as a competitor and successor to the Australian producers. The French producers should also contribute to the discussion with the other producers in the regions or country so that they could come to know about new trends so that they could move accordingly. Once the French producers maintain its quality then they will be able to increase their exports to the US as well. Once the exports to the US is increased, then it will be easy to penetrate into the market once again. However, the main thing remains same that it the quality and consistency of its taste and quality.

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