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Moreover, the wine production techniques are not patented or difficult to copy. In Europe, governments have made regulations on how the production of wine should be carried out.
Lately, the new world producers are trying to increase entry barriers by operating on large volume and taking advantage of economies of scale.
• Bargaining power of suppliers
The basic raw material of wine industry is grapes. The quality of wine depends a lot on the quality of grapes. In Europe, the grape farmers had tried to form cooperation to get a bargaining power against the wine manufacturers.
In the new world, however, many wine producers have integrated backwards and have their own vineyards...
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