Status games in Wine industry .pdf

Changing behavior with a systems approach we expand

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Changing behavior with a systems approach. We expand the focus adopted by previous research to include in uential actors outside the industry. Our analysis reveals four new ap- proaches for shaping market behavior (see Figure 2). Firms attempt to create status by fi rst developing a unique, forward- looking vision. They cultivate their vision within the organi- zation, often with one prominent visionary, and then dissem- inate that vision by celebrating the winemaker, creating allies in the press and media, and using retail outlets as a stage on which members of the fi rm perform. Through this process, fi rms hope to gain recognition for their vision, while the market structure and other constraints remain essentially unchanged. Winners of the status game gain symbolic capital that confers in uence to these fi rms that rivals simply do not have. High-status fi rms use that in uence to shape the game to their advantage. Consumers prefer high-status wines, which increases demand, and in turn, this high demand gives brands access to in uencers who can help shape consumer preferences. Producer behavior is shaped through these same mechanisms. Low-status brands try to imitate high-status brands while also paying deference to them. Success creates opportunities for high-status fi rms, reinforcing their superiority and enhancing the celebrity of their winemaker, relationships with the press and media, and the power of retail performances. Furthermore, we fi nd that fi rms create in uence with consumers through collective action. The success of any one fi rm depends on the actions of many actors. For example, previous analyses have discussed customer education, but we fi nd that customer education is a social process that involves a broader system of critics and retailers. Expert consumers can also play a role, as they shape the preferences of their peers during social gatherings and through knowledge sharing. Successful market-driving fi rms create symbolic value for consumers with their brands as a result of their status within the industry. In summary, we fi nd that fi rms create ongoing competitive advantage through social in uence by engaging in a subset of activities and by gaining status to in uence that system. This fi nding both extends and adds richness to the established frameworks. Managerial Implications Our analysis offers new insights into market orientation. We identify the process of competition when fi rms drive markets. Based on that process, our analysis reveals new avenues for creating competitive advantage, including an unexplored role of brands. Become a Teaching Organization For market-driven fi rms, indeed for most fi rms, developing marketing strategy begins with identifying opportunities.
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