National Competitive Advantage as the Context for Marketing Strategy: An Empirical Study of the New Zealand Wine Industry

Abstract

National competitive advantage is a model which is widely taught in business schools but there has been limited research into its usefulness for managers and policy makers in particular economies and industries. This research looks at New Zealand, and in particular its wine industry as a context for the national competitive advantage model. The literature discusses the influence that both organisational resources and national competitive advantage have on organisational performance and profitability, examining such factors as domestic demand, the factors of production, related and supporting industry, the nature of domestic rivalry and how organisations are developed and managed. The data was gathered from CEO's of wineries, plus industry and national reports on the performance of the wine industry and the New Zealand economy. The research found that New Zealand suffers from policy inconsistencies, poor performance of senior management and competitive disadvantage in research and development, licensing, value chain management, regional sales and international distribution. Also, new knowledge created in Universities and Research Centres is not being transferred adequately to new and growing firms. However, it performs well in terms of competition policy, taxation and trade liberalisation. The New Zealand wine industry has both extensive and intense competition, has limited access to venture capital and does not have effective cluster development. There is considerable work to be done by the wine industry in terms of developing human capital and innovation if it is to remain internationally competitive. Also, it is essential to work co‐operatively in international markets and to identify clearly defined target market segments.

Citation

Bretherton, P. (2004), "National Competitive Advantage as the Context for Marketing Strategy: An Empirical Study of the New Zealand Wine Industry", International Journal of Wine Marketing, Vol. 16 No. 1, pp. 36-52. https://doi.org/10.1108/eb008765