The rivalry in the industry is strong.

The rivalry in the industry is strong.

The five competitive forces were analyzed. The rivalry in the industry is strong. Wine producers want their wine to be the best wine out there. The competitive environment is harsh for especially for small wineries. The costs can get to unbearable for them to be competing with larger wineries. Large wineries have most of the market share. The potential entry of new competitors is a low level. It is hard for small wineries to compete well and stay alive in the wine business. The industry is very large. Just by going into a liquor store, you can see all the varieties of wine. Most wineries are family owned and have been passed down from generation to generation for many years. A bigger winery has a better chance of surviving, but the rivalry is so strong. There is a high level of substitute products for wine. Wine is an alcoholic drink and there are many to choose from. There are many different kinds of beers and liquors. Beer and some liquor are less expensive. Some people drink on a weekly basic and do not want to spend a lot of money every week on alcohol, so they drink whatever is cheaper, and wine is not a cheap drink when compared to other alcoholic drinks. The bargaining power of the supplier to seller is a moderate to high level. The grapes are an important part of the wine. Wine producers will pay a high price to get quality grapes. The vineyards have some power in the pricing of their grapes. Wine producers have been known to compete aggressively and make the prices high. Some wine producers will go into a contract with well-known quality grape producers, or they will buy a vineyard to avoid the bidding war to get good grapes. The bargaining power of the seller to buyer is a low to moderate level. It is illegal to sell wine directly in the United States unless there is a gift shop on the property. Wine producers do not have a lot of say when bargaining with distributors because they nee…


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