Abstract
This research presents a case study of the wine distribution system of the Dominican Republic (DR). It focuses on the emerging wine market which is not a wine producing region, however represents a large and growing market for export of wine. Data were collected though in-depth interviews with major representatives of the DR wine distribution system–importers, retailers, managers of restaurants, allinclusive resorts, and hotels. In addition, field observations were used as a mechanism of qualitative data collection. The findings show that almost all available wine in the DR is controlled by importers. Importers negotiate promotional costs, slot fees, and promotional budgets with the producers and provide credit to retailers. The Dominican Republic wine market operates in a highly competitive environment; Spain, Chile, Italy, and the United States are primary competitors on this market. Retail represents the biggest channel for sales of imported wines.
Highlights
Since the late 1980s, the world has witnessed globalization of many industries
To improve profitability and to confront difficult competition,companies are in search of effective ways to improve themanagement of the supply chain which plays an essential role for cost reduction and productivityincrease [8]
According to Soosay et al, value chain analysis focuses on three key issues - first, the dynamics of information in the value chain; second, the creation and flow of value at each stage in the value chain; and third, the level of trust between shareholders [10]
Summary
Since the late 1980s, the world has witnessed globalization of many industries. Globalization is a process that came unavoidably due to many economic, political, technological, and social changes. Impacts of globalization in the wine industry are seen in Asia Asian countries such as Japan, Taiwan, Singapore, China, and Korea have increased their wine consumption significantly and represent potential export markets [2]. Globalization of wine industry led to the creation of production in the New World countries. Globalization has fostered increased international competition between Old and New World producers [4]. Production of wine in the New World is increasing, in the United States, Australia, Chile, Argentina, New Zealand, and South Africa. United States, Argentina, and Australia followed the three leaders in the production ranking for the same year These three countries increased their production share within the same time period by 5.67%, 8.00%, and 12.36%, respectively [5]. One way for an industry to achieve competitive advantage is through the analysis of existing supply chain with consideration for local conditions within the global context
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