Wine Industry Analysis
Wine Industry AnalysisThreat of Entry – Medium For large producers of wine, there are large capital requirements needed that would make it hard for new entrants, they would also not have access economies of scale which increases the barriers to entry.  For small premium wineries the barriers to entry are lower, they face smaller capital requirements and have easy access to specialized machinery and require limited land investments (
The Bargaining Power of Suppliers – LowThe wineries have been able to decrease the bargaining power of suppliers in the industry by integrating backwards and having their own vineyards to produce grapes, this way they don’t have to rely on suppliers to produce the needed inputs. The cost of There is a large availability of grapes and they are low-priced (