Chapter 9 - David versus Goliath: Market Entry Strategies of Small and Medium Sized Wine Estates

Abstract

In saturated markets, small and medium wine estates face strong competition, not only from other domestic producers but also from international wine producers. Thus, small and medium wine estates are increasingly considering other distribution channels or new markets. In this context, ‘export’ as a strategic approach has gained popularity among those producers. The aim of this chapter is to elaborate on export strategies of small and medium sized wine estates, addressing their challenges and obstacles. We will conduct a literature review on market entry strategies and challenges of internationalization. Afterward we present a case study using the small Verband deutscher Prädikatsweingüter wine estate Georg Müller Stiftung, which has been active in China for roughly 10 years. Overall, it can be considered as one of the German benchmarks for exporting wine to China.