The US wine industry in 2001 had several downward pressures that made it an unattractive industry to enter. The market was already crowded with too many players for the limited market size. Additionally, more wineries were entering due to low barriers to entry, which increased supply. Demand for wine was also low and growing slowly. For companies considering entering the industry, the strategy should focus on differentiating their product to increase demand. For established players, the strategy should focus on increasing demand through enhanced marketing campaigns while dealing with the high bargaining power of major retailers.