Intensity of rivalry among existing competitors in the wine-making branch

Radka Šperková and Helena Hejmalová
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Radka Šperková: Ústav managementu, Mendelova univerzita v Brně, Zemědělská 1, 613 00 Brno, Česká republika
Helena Hejmalová: Ústav managementu, Mendelova univerzita v Brně, Zemědělská 1, 613 00 Brno, Česká republika

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 2012, vol. 60, issue 2, 429-436

Abstract: The analysis of the rivalry among existing competitors in the wine-making branch is the aim of this paper. On the whole, the rivalry among existing companies in the wine-making branch may be described as intensive. When evaluating the level of intensity of rivalry among existing businesses in the branch, it is necessary to take into consideration their size and market share. Among first ten most significant companies on the market (84% market share) there is intensive competing. Individual companies use all their tangible and intangible means in order to extend their share and attract new clients. The aim of this competing is to strengthen the clients' trust in given brands, and it is about efforts to obtain the best positions possible for negotiations of wine distribution, mainly to chain stores, which requires favorable price quotes. The other group of subjects operating in this branch is formed mainly by small producers (16% market share). Given their small size, they are unable to effectively use the economy of scale, they do not make too big profit, and so they do not have enough finances for intensive competing.

Keywords: existing competitors; wine-making branch; Porter's five force model; branch growth; differentiation (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:mup:actaun:actaun_2012060020429

DOI: 10.11118/actaun201260020429

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