Review of the vineyard data quantification society and the european association of wine economist

Analysing the competitiveness of the wine industry: the South African case

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Year: 2008
Authors: Johan van Rooyen (University of Pretoria); Dirk Esterhuizen (University of Pretoria)

Competitiveness performance is a dynamic and involved process rather than an absolute state of affairs and can therefore only be assessed in a relative sense and over time. In this paper competitiveness is defined as the ability to sustain a country's wine trade in the global environment. The RELATIVE TRADE ADVANTAGE (RTA) formula is firstly used to measure competitive performance in the South African wine industry since 1960. The PORTER MODEL is then applied to analyse recent views and opinions of wine executives on factors enhancing and constraining competitiveness. Strategic approaches to sustain competitiveness are identified.

Published in Enometrica, September 2008