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Analyzing the Competitive Performance of the South African Wine Industry

Author

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  • van Rooyen, Johan
  • Esterhuizen, Dirk
  • Stroebel, Lindie

Abstract

This article describes a methodology and a four-step framework to measure and analyze competitive performance of the South African wine industry. Competitive performance is viewed as the ability to sustain trade against the competition in the global market. The economic sustainability of the South African wine industry is found to be highly dependent on its trading performance, with more than 40 percent of production consistently being exported since 2005. The views and opinions of South African wine executives through the Wine Executive Surveys of 2005 and 2008 are used to identify, describe and explain these competitiveness trends and to qualitatively comment on factors impacting on performance. The Porter Diamond is applied to derive the most important industry determinants of competitive performance. From this analysis changes in the “competitiveness space” of the South African wine industry are described and analyzed and a wine industry agenda is proposed to enhance competitive performance.

Suggested Citation

  • van Rooyen, Johan & Esterhuizen, Dirk & Stroebel, Lindie, 2011. "Analyzing the Competitive Performance of the South African Wine Industry," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(4), pages 1-22, November.
    • Handle: RePEc:ags:ifaamr:117597
    DOI: 10.22004/ag.econ.117597
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    References listed on IDEAS

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    2. Ferto, Imre, 2008. "Comparative Advantage And Trade Competitiveness In Hungarian Agriculture," Bulletin of the Szent Istvan University 43326, Szent Istvan University, Faculty of Economics and Social Sciences.
    3. Nicole Valentine & Gena Krasnik, 2000. "SADC Trade with the Rest of the World: Winning Export Sectors and Revealed Comparative Advantage Ratios," South African Journal of Economics, Economic Society of South Africa, vol. 68(2), pages 114-124, June.
    4. Frohberg, Klaus & Hartmann, Monika, 1997. "Comparing measures of competitiveness," IAMO Discussion Papers 2, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
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    Cited by:

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    2. Lubinga, H. Moses & Ngqangweni, Simphiwe & Nyhodo, Bonani & Potelwa, X. Yolanda & van der Walt, Stephanie & Phaleng, Lucius & Ntshangase, Thandeka, 2017. "Geographical Indication (GI) in the wine industry: Does it matter?," NAMC Publications 262912, National Agricultural Marketing Council.
    3. Brito, Marcel Moreira & Ferenc Istvan, Bánkuti & Sandra Mara Schiavi, Bánkuti & Geraldo, Tadeu dos Santos & Júlio César, Damasceno & Ely Mitie, Massuda, 2015. "Horizontal Arrangements and Competitiveness of Small-Scale Dairy Farmers in Paraná, Brazil," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(4), pages 1-18, November.
    4. Carraresi, Laura & Banterle, Alessandro, 2015. "Agri-food Competitive Performance in EU Countries: A Fifteen-Year Retrospective," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(2), pages 1-26, May.
    5. Mpho Sharon Makgedi Makaleng & Progress Hove-Sibanda, 2022. "Reverse Logistics Strategies and Their Effect on the Competitiveness of Fast-Moving Consumer Goods Firms in South Africa," Logistics, MDPI, vol. 6(3), pages 1-26, August.
    6. Katarzyna Łukiewska & Małgorzata Juchniewicz, 2021. "Identification of the Relationships between Competitive Potential and Competitive Position of the Food Industry in the European Union," Sustainability, MDPI, vol. 13(8), pages 1-13, April.

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