A managerial survey to discuss wine business models

Description

Abstract

Purpose. The purpose of this paper is to describe, analyze and compare business models (BMs) developed and used by wineries in two different regions, one from the New World of the wine (the USA, Connecticut (CT) and Rhode Island (RI)) and the other from the Old World of wine (Spain (Rias Baixas)).

Design/methodology/approach. A survey was conducted aimed at all the wineries of both regions. The survey describes wineries' decision-making process regarding their value chain through four variables, namely, supply, product, market and distribution and their perceptions regarding how competitive their business enviroment is through five variables, namely, barriers of entry, power of suppliers, power of buyers, internal competition and the threat of substitute products. This complimentary analysis (internal and external) approaches a definition of the BMs used in wineries of these two different wine regions.

Findings. The study highlights how BMs evolve and adapt to the competitive enviroment in which companies find themselves wineries from CT and RI BMs display behavior elements of companies competing in the stage of maturity of the life cicle.

Original/Value. The paper shows empirical evidence of the use of BMs in agribusiness sector as important as the wine industry. It also describes these distinctive BMs per region and explains how the creation of value occurs and how they adapt to different environmental conditions.