L. Camanzi, Cristina Grazia, É. Giraud-Héraud, G. Malorgio
{"title":"Quality differentiation in the Italian wine industry: terroir-based vs. brand-based strategies","authors":"L. Camanzi, Cristina Grazia, É. Giraud-Héraud, G. Malorgio","doi":"10.1504/IJGSB.2017.10009835","DOIUrl":null,"url":null,"abstract":"This study assesses the reasons that induce wine firms to choose their differentiation strategy, namely a terroir-based or a brand-based approach, considering both endogenous factors (e.g., firm size, nature of upstream-downstream relations) and exogenous conditions (market size/opportunities, collective brand reputation). First, we provide an empirical characterisation of the Italian denomination of origin wine processing and bottling industry as well as of firms' quality differentiation strategies, by means of a cluster analysis (CLA). Based on these results, we developed an industrial organisation model explaining the incentives for firms to adopt each strategy in a competitive context, focusing on the trade-off between terroir-based strategies and brand-based strategies. We conclude that brand-based strategies are motivated mostly by scale economies, short-run market opportunities and synergies between brand and designations of origin, while the main reasons prompting firms to choose terroir-based strategies relate to supply chain control, low demand uncertainty and competition intensity.","PeriodicalId":35412,"journal":{"name":"International Journal of Globalisation and Small Business","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2017-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"8","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Globalisation and Small Business","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1504/IJGSB.2017.10009835","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"Business, Management and Accounting","Score":null,"Total":0}
引用次数: 8
Abstract
This study assesses the reasons that induce wine firms to choose their differentiation strategy, namely a terroir-based or a brand-based approach, considering both endogenous factors (e.g., firm size, nature of upstream-downstream relations) and exogenous conditions (market size/opportunities, collective brand reputation). First, we provide an empirical characterisation of the Italian denomination of origin wine processing and bottling industry as well as of firms' quality differentiation strategies, by means of a cluster analysis (CLA). Based on these results, we developed an industrial organisation model explaining the incentives for firms to adopt each strategy in a competitive context, focusing on the trade-off between terroir-based strategies and brand-based strategies. We conclude that brand-based strategies are motivated mostly by scale economies, short-run market opportunities and synergies between brand and designations of origin, while the main reasons prompting firms to choose terroir-based strategies relate to supply chain control, low demand uncertainty and competition intensity.
期刊介绍:
The goal of the IJGSB is to explore the opportunities and threats of globalisation for small businesses as well as small businesses" strategic options in an increasingly global world. Dramatic changes in contemporary society and the economy have impacts on small businesses. The changing environment negatively influences the development and survival of smaller organisations in some areas and creates new opportunities for small businesses in others. Small firms" managers increasingly have to cope with global as well as local competitive dimensions. Research in this broad field thus is highly relevant.