Differentiation strategies and winery financial performance: An empirical investigation

Artikel

This investigation into small-to-medium sized wine businesses empirically tests linkages among differentiation strategies and financial performance over time. Using a two-by-two model, we examine the impact of differentiation strategies on profitability and growth. Financial and operational data from a proprietary database of 71 United States wineries, encompassing five continuous years (2006-2010), provide longitudinal robustness. Management decisions regarding resources and capabilities are used to cluster the sample firms into a two-by-two differentiation strategy model. Those wineries sourcing over 50% estate grapes and distributing over 50% direct-to-consumer have higher gross margins compared to other clusters. Direct-to-consumer distribution decisions impact growth. Results of this research indicate that distribution channel choice-direct-to-consumer-positively impacts gross profit margin and winery growth rates. Supply chain choice-sourcing estate grapes also positively impacts gross profit margin. This study uses reported financial data that have not been made available to researchers.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Wine Economics and Policy ; ISSN: 2212-9774 ; Volume: 4 ; Year: 2015 ; Issue: 2 ; Pages: 88-97 ; Amsterdam: Elsevier

Classification and Topics

• Classification: Wirtschaft
• Subject: Competitive strategy ; Differentiation ; Financial performance ; Small and medium-sized enterprises (SME) ; Wine industry

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Newton, Sandra K. ; Gilinsky, Armand ; Jordan, Douglas
• Event: Veröffentlichung
• (who): Elsevier
• (where): Amsterdam
• (when): 2015

Further information

• DOI: doi:10.1016/j.wep.2015.10.001
• Handle: http://hdl.handle.net/10419/194503
• Last update: 10.03.2025, 11:42 AM CET