The paper "International Business Strategy for Wine Industry " is a perfect example of a business case study. The paper looks into the wine industry by looking into resource and institution-based view and the way in which the wine industry has grown over the old economies. The paper highlights the method in which the resource-based view which utilizes the competencies and resources of an organization gain competitive advantage. This along with the institutional-based view presents, the manner in which the formal and informal environment factors affect the wine industry. The resource-based view presents the behaviour in which the resources present in an organization helps to deliver success for an organization.
This view concentrates on the competitive advantage that the firms are able to get by using their resources, after understanding the industry competitiveness and bringing the transition which helps to shape the performance of an organization. (Millard, 2010) The way in which the wine industry is changing due to the new resources and technology, being used by the new world, presents an excellent case of the use of resources to develop the company. The resource-based view for the Wine Industry has been divided into the industry based on competition, firm based resources and capabilities and the condition and transition which helps to identify the strategy of the new world.
(Barney & Jay, 2001) On the industry based competition view, the case presents different areas which highlighted the growth the new world showed. The resource-based view highlights the importance resources have for an organization and stands as a differentiating factor in comparison to others. (Kotelnikov, 2001) This was evident in the case, as there was the availability of land which was cheap for the new world compared to the old, make them gain a strong foothold in the wine industry.
This made it easy to produce goods and provide an advantage. The resource-based view concentrates on the development of technology which helps them to be ahead of competitors and provide an extra return (RBV, 2011) as seen from the usage of technology in harvesting wine. This made the new world differentiate as technology made it easy to produce wine and also helped to earn a superior return, at the same time provide quality.
There was a wide difference in the quality of wine manufactured by new and old economies which made people shift towards higher quality wines of the new economies. This view also highlights that developing asymmetry, which helps to provide a competitive advantage as others can’ t replicate them, provides a competitive advantage to the firm as those resources are rare. (RBV, 2011) This was seen in the Wine Industry case, where the new world economies were able to create a brand power that helped them ensure that they stayed ahead of competition from the old economies. On the firm based resources and capabilities view the case presents different areas which highlighted the growth the new world showed.
The resource-based view capitalizes on the resources and capabilities which an organization possesses and helps to distinguish on the basis of those factors. (Adam, 2011) The case presents the manner in which the new world was able to use both the tangible and intangible assets.
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