Crafting a local-global nexus in the Australian wine industry

Emerald Group Publishing Limited
Publication Type:
Journal Article
Journal of Enterprising Communities: People and Places in the Global Economy, 2008, 2 (1), pp. 73 - 87
Issue Date:
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Abstract: Purpose To examines strategies that have locked the Australian wine industry into a price-sensitive, commodity wine market. The paper seeks to explain the inherent weakness of these strategies and their inability to address current challenges and opportunities. Design/methodology/approach The paper uses empirical research data gathered from 100 SME wine firms. These firms were selected using a stratified random sampling technique. Four states were covered New South Wales, Victoria, South Australia, and Western Australia with all major wine regions in these states equally represented. There was careful sampling according to size, so that boutique, and small- and medium-sized firms were represented. Non-exporting firms were excluded. In each case either the CEO or the marketing manager was interviewed. Findings The findings confirm the paper's hypothesis, that increasingly the Australian wine industry has become risk-averse and locked into paradigms and organizational frameworks that are disconnecting from users and their requirements. The findings concur that greater differentiation of place, product, supply chains, and markets is required if the industry is to operate effectively within a multi-dimensional landscape and continue to attract sustainable returns.
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