1.

The following are the reasons:

 Geographical location: France's climate and soil are perfect for winemaking and
easy transit. It the world's wine leader by harnessing these conditions and
accumulating winemaking expertise.
 Fragmented lands: The French revolution split vineyards. Quality was prioritised
by fragmentation.
 Innovations for mass production: Mass-production advancements like cork
stoppers and glass bottles extended wine shelf life. This boosted French wine
exports.
 Role of Government Regulations: Government restrictions standardised wine
quality which guaranteed appropriate product production, boosted rivalry
among French winemakers to manufacture the best wine.
 Prestige of French wines: Since French wine industry was strictly controlled, it
had the prestige of possessing the world's best wines. French winemakers
charged premium because of this prestige.

2. The following are the reasons:

 Availability of cheap and extensive vineyards: After World War II, inexpensive
and wide vineyards became accessible, leading to enormous production in the
US, Australia, and other New World countries.
 Unconstrained tradition and Innovations: New world winemakers, unrestrained
by convention, experimented with winemaking and grape growing methods.
Most breakthrough methods and technology were prohibited in France.
Packaging, transportation, and shipping expenses accounted for 14% of French
wine unit costs (Exhibit 1). Wine-in-a-box and screw closures reduced storage
and shipping expenses and enhanced wine shelf life. These innovations created
high-quality wine at cheaper prices than French wines.
 Owning the value chain: New world firms owned the value chain. This control
increased their adaptability to changing demand patterns and reduced handling
and inventory costs. Winemakers' wine surplus dominated retail negotiations.
 Targeting unsophisticated palate: New World nations targeted unsophisticated
palates which boosted global sales.
 Favourable weather: The sunny weather of the New World allowed farmers to
manufacture wine year-round with modest vintage variations.
 Judgement of Paris: The blind tasting in Paris showed Old World winemakers and
consumers the better quality of New World wines. This victory boosted New
World exports.
 Transportation Costs: As transportation expenses soared and shipping container
costs declined, France-to-UK wine shipping rates were equivalent to Australia-to-
UK, allowing competitive pricing.
 Focus on branding: New World capitalised by branding its wines and developing
customer confidence. The customers were then steadily upsold.

3. Price and image are issues for Australian wine. Since wine prices can't be
lowered, focus on brand equity. I'll suggest that the head of wine industry
associations invest in marketing the products as premium by collaborating with
mid- to high-end brands and restaurants to showcase Australian wines' higher
value to price. I will tell them to target India and Africa. These regions have
young demographics to create brand loyalty. Final advice: invest in digital
technologies to optimise wine making control systems, create digital brand
awareness, and understand taste and preference patterns. I will advise producers
to find innovative ways to lower production costs, such as rainwater harvesting
and having a side crop in case of drought. Form a committee to convince the
government to improve their irrigation. My final advice is to produce premium
and basic wines since demand will rise in emerging markets.