Generally spoken, a wine company is not so dependent on raw materials and labor, the most determining factor in producing wine is the climate, which has a powerful impact on the pricing during the entire production process.
Moreover US-producers have recognized that their consumers may not be experts on wine. The threat of a substitute product or service is high if it offers a value proposition that is uniquely different from present offerings of the industry.
By contrast, French producers have not yet been so efficient, whereby their wine exports are lagging behind. The primary industry transformation of the past few years though, relates to the wine-production evolution of countries that do not have a corresponding historical wine-making tradition.
Public companies can use their shares as a currency to make acquisitions.
The Caserta, Salerno and Naples provinces have the highest number of micro-enterprises, while the Avellino and Benevento provinces have a stronger presence of larger firms Rossi, a, b.
Buyers like distributors and wholesalers are probably the largest costumers for a wine company and if this is the case they will probably also gain a lot of bargaining power. If the products in an industry are well differentiated, established firms can have the advantages of brand recognition and customer loyalty.
The exiguous EBIT, in fact, is further eroded by the cost of financing. This leads to the following hypothesis: H1 Internationally listed wine firms and leading Italian wine makers achieve a higher growth rate in sales than Campania wine enterprises.