Strategic profiling and the value of wine & tourism initiatives: Exploring strategic grouping of German wineries

Abstract

Purpose

This paper aims to contribute to the growing body of literature on wine and tourism, as it explores the value contribution of tourism in the context of strategic grouping of wineries.

Design/methodology/approach

A panel of three online surveys about the strategic management of German wine estates served to analyze wine and tourism as potential strategic levers. More than 300 German wineries participated in the surveys.

Findings

Almost 50 per cent of the interviewed wineries planned to extend their tourism services. The implementation rate is high and reaches nearly the level of new product implementation. Tourism is therefore highly relevant. It can serve to profile in the market. Cost leaders and boutique wineries were two strategic groups indicating reluctance to pursue tourism-based strategic initiatives. The data illustrate a potential strategic trade-off between tourism and export management.

Research limitations/implications

The study is neither representative for the German nor for an international winery population. Data were generated in a broader context of strategic and innovation management research. Descriptive analyses dominate the explorative study.

Practical implications

Extending services to win tourists helps to differentiate and to attract new clients. For less differentiated strategies (price-value and quality-leadership), tourism can be a strategic lever to sustainably increase profits. Smaller wineries need to strategically assess their growth option. They may face a strategic dilemma whether to export their goods or to add tourism offer components. Fierce international competition and restrictions due to small size represent export barriers, favoring a strategy to exploit market potentials via tourism. Concerted wine tourism efforts require a more sensitive approach considering the individual strategic motivation of wineries. The strategic value depends on the strategic grouping.

Social implications

Wine and tourism can create regional and thereby social value. Addressing the strategic value of tourism for the individual wineries fosters tourism engagement and encourages a cluster approach.

Originality/value

Literature universally praises the synergetic value of wine and tourism. This research proposes a more sensitive approach reflecting strategic groupings and individual value contribution of tourism activities for the wine estates.

Citation

Dressler, M. (2017), "Strategic profiling and the value of wine & tourism initiatives: Exploring strategic grouping of German wineries", International Journal of Wine Business Research, Vol. 29 No. 4, pp. 484-502. https://doi.org/10.1108/IJWBR-04-2017-0026