Differentiation or path dependency: a critical look at the Australian wine industry
- John Wiley & Sons Ltd.
- Publication Type:
- Journal Article
- Strategic Change, 2008, 16 (8), pp. 385 - 398
- Issue Date:
In 2007 the Australian wine industry is at a crossroads, both organizationally and culturally. Having achieved considerable success over the past three decades, the industry is now operating in the shadow of that success. Rather than adapting to new and multiple operating pathways of a global wine landscape, industry organizations continue to steer their sector along the entrenched and restrictive pathways of previous achievement. This paper examines strategies that have locked the industry into a saturated, price-sensitive, commodity wine market. It explains how these strategies will inherently fail to address current challenges and opportunities, and based on empirical data, why a differentiated, region-specific approach to wine production is the most likely strategy for survival.
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