Clustering as a strategy for developing the global competitiveness of small wine producers in South Africa
The environment, in which wine business operate, is the global wine arena. This environment is increasingly complex, competitive and fraught with challenges (Rabobank International, 2003). In addition to managing the changes in supply and demand, the competition is mounting and the challenges are increased by a structural and long-term oversupply that has caused falling prices and margins all round the globe (Rabobank International, 2006). The four recognised and accepted drivers of change for the wine industry are shifting demand; increasing retail power; the increasing impact of brands and increasing competition between wine countries and companies.
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