Innovation lock-in: unlocking research and development path dependency in the Australian wine industry

Innovation within the Australian wine industry is at a crossroads. More specifically, under the influence of fundamental paradigm shifts, the objectives, extension and uptake of R&D within the industry’s current innovation framework are being subjected to rather schizophrenic forces. At one level, industry organizations are directing the R&D agenda from within a national, ‘Brand Australia’ context. At another level, the firms that are being serviced by these organizations are demanding region-specific R&D extension in response to global pressure for differentiation and products at higher price-points. This paper will explore these contradictory forces and the degree to which they signal an emergence of innovation lock-in within the industry. It will also propose a model for the effective distribution of R&D at a regional or local level

Differentiation or path dependency: a critical look at the Australian wine industry

In 2007 the Australian wine industry is at a crossroads, both organizationally and culturally. Having achieved considerable success over the past three decades, the industry is now operating in the shadow of that success. Rather than adapting to new and multiple operating pathways of a global wine landscape, industry organizations continue to steer their sector along the entrenched and restrictive pathways of previous achievement. This paper examines strategies that have locked the industry into a saturated, price-sensitive, commodity wine market. It explains how these strategies will inherently fail to address current challenges and opportunities, and based on empirical data, why a differentiated, region-specific approach to wine production is the most likely strategy for survival

An empirical confirmation of wine-related lifestyle segments in the Australian wine market

The wine industry has been criticised in the past for adopting a mass-marketing approach but in the current ultra-competitive wine market the inevitable outcome of a production rather than marketing orientation is almost certain failure. Whereas the Australian domestic wine market is currently experiencing a low growth rate, a precursor to any future growth strategy is a clear understanding of the market. Acceptance of market segmentation as a strategy to target consumers more effectively enhances the focus and differentiation essential to achieve growth in the wine market. Recently a new segmentation approach of lifestyle based on a cognitive deductive perspective that makes lifestyle specific to the area of wine consumption was developed by Bruwer et al. (2001). This process included the development of a wine-related lifestyle (WRL) measurement research instrument and the identification of five wine-related lifestyle market segments. In this paper, a study conducted in the Australian wine market on 363 consumers to empirically confirm or disconfirm the previously identified five wine-related lifestyle segments is reported on. The further theoretically-driven development and improvement of the WRL research instrument is also described