Fahad Javaid101@Yahoo.Com

In: Business and Management

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Australia is the fourth largest wine-exporting nation after France, Italy and Spain, sending approximately 2.5 million bottles of wine overseas each day. The UK and the US are Australia’s largest markets. Australia is the biggest wine exporter to the UK, and the second biggest to the US, behind Italy. Australia’s exports in wine have grown at an extraordinary rate in recent years. On a national scale, Australia has about 2000 wine companies and the sector employs around 31,000 people. There are 167,000 hectares under vine and the total grape crush is1.85 million tones.
Michael porter developed the theory of national competitive advantage. This explains why particular nation achieves international success in particular industries. Competitive Advantage of nations has been the outcome of 4 interlinked advanced factors: Factor conditions, Related & supporting industry, Firm strategy and rivalry and Demand conditions.
Factor Conditions: Australian wine has a competitive advantage because of its natural resources and environment. Lower land costs, a large choice of climates and terrier offering regional diversity spread across 62 regions. Australia has a strong infrastructure of viticulturists and winemakers, research institutions and an industry structure, which is free from the regulatory strictness. There is also unity in the Australian wine sector and close working relationships with related industries such as food and tourism.
Firm Strategy and Rivalry The Australian wine industry displays the cluster characteristics of a geographic concentration of interconnected companies and institutions producing a defined product. Collaboration and competition, with the industry citing the pre- competitive sharing of research outcomes, the development of market strategies and the sharing of costs in relation to research and industry development. These links and…...

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