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1. Industry attractiveness

a. Porter’s Five Force Model
To assess the industry attractiveness we will use the Porter’s Five Force Model.

• Threat of substitutes
Wine has been the preferred alcoholic beverage of the European people. But with the changing taste of younger generation, wine is loosing customer share to other drinks.
• Threat of entry
The wine industry is not capital-intensive, as it does not require heavy machinery and investments. Moreover, the wine production techniques are not patented or difficult to copy. In Europe, governments have made regulations on how the production of wine should be carried out.
Lately, the new world producers are trying to increase entry barriers by operating on large volume and taking advantage of economies of scale.
• Bargaining power of suppliers
The basic raw material of wine industry is grapes. The quality of wine depends a lot on the quality of grapes. In Europe, the grape farmers had tried to form cooperation......

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Approximate Word Count: 2544
Approximate Pages: 11 (250 words per double-spaced page)

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