Porter’s Diamond Model

French Wine Industry

Deep Patel A10
Harshit Patel A15
Hritvik Polumahanti A17
Nuti Thakkar A26
Sanjani De Sarkar A37
Chance
• France being the 15th most prone
country to natural disasters can
have a huge impact on supplies of
raw material for the industry
• developing production capabilities abroad
• degree of customer orientation, overall
internationalisation of firms with control of international
distribution
• competitition based on luxury and perception of show of
‘class’

• Strong Infrastructure including Rivalry

logistics, communications, and • Bordeaux Wine is so prized around the world is due to its
administrative fronts. ageing potential.
• Low tax rates on wines. (It levies • natural drainage, access to water from the Atlantic ocean
only $0.03 tax per bottle) and the Gironde provides Bordeaux to be the ideal
Factor
Demand location.
inputs
• Increasing R&D expenditures as a • Global demand is increasing, less due to the quality of
% of GDP the wine and more due to their products’ positioning as
• Increasing number of luxury items and status symbols.
researchers per million of • Local demand gradually decreased
inhabitants. Supporting
industries

Government
• Customer group in common with that of speciality foods
• Introduced Appellations d'Origine Contrôlée in
alcoholic spirits and fermented goods
1950s by the state as a quality check
• Strong industries that supply key inputs for wiemaking suck as
• Low tax rates on wines. (It levies only $0.03 tax
corks food machinery, metal and glass
per bottle)
• Economies of scale on supply side and shaping consumer
preferences on demand side