The document discusses strategies for the European wine industry to better compete in the growing US wine market. It identifies that the US market has increasing demand, higher quality wines, and less regulation than Europe. The strategies focus on three pillars: marketing, reducing production costs, and R&D. Specific recommendations include improving quality and branding, using the internet to promote wines, reducing overcapacity through industry cooperation, increasing land use flexibility and efficiency, automating processes, and improving harvest techniques. Individual companies are advised to support the sector strategies by focusing on premium wines and targeting Generation X and Baby Boomer consumers.

1. GLOBAL WINE WAR
STRATEGIC MANAGEMENT
NATHALIE DEGEYTER, PIETER LOGGHE, FLORENCE STRUBBE,
TIM VAN REGENMORTEL, ALEXANDER VANDENBERGHE

2. INTRODUCTION
 Characteristics of the US wine market
 Growing demand
 Higher quality wines
 Most attractive market in the world
 Less regulation
2 © Vlerick Business School

3. SECTOR LEVEL APPROACH
CURRENT PROBLEMS THREE MAIN PILARS
 Production cost too high  Marketing
 Insufficient sales and  Production cost
branding efforts
 R&D
 Inefficient use of land
3 © Vlerick Business School

4. MARKETING - QUALITY
4 © Vlerick Business School

5. MARKETING - INTERNET
5 © Vlerick Business School

6. MARKETING – INDUSTRY AND GOVERNMENT
FINANCE
6 © Vlerick Business School

7. MARKETING – REDUCE OVERCAPACITY
7 © Vlerick Business School

8. PRODUCTION COST– FLEXIBILITY OF THE LAND
8 © Vlerick Business School

9. PRODUCTION COST – EFFICIENCY OF THE LAND
9 © Vlerick Business School

10. R&D - AUTOMATION
10 © Vlerick Business School

11. R&D – GENERAL IMPROVEMENTS
 Harvesting multiple times
 Density of grapes per rank
 More ranks on one field
 Protection against diseases
 Reduction of quality variability
11 © Vlerick Business School

12. COMPANY LEVEL APPROACH
 Join and support the sector level strategy plan
 Aim at premium wine segment again
 Try to reach generation X and baby boomers
12 © Vlerick Business School

13. THANK YOU!