The competitive landscape in transitioning countries: the example of the Armenian wine industry

Scholars showed that in transition and developing countries originating from the Soviet period, the degree of market competition is rather low, as large corporates that had been operating were still prevailing. One can assume that the markets had been highly attractive and many newcomers must have b...

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Main Authors: Linda Bitsch, Barbara Richter, Jon H. Hanf
Format: Article
Language:English
Published: Firenze University Press 2022-01-01
Series:Wine Economics and Policy
Subjects:
Online Access:https://oaj.fupress.net/index.php/wep/article/view/10657
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author Linda Bitsch
Barbara Richter
Jon H. Hanf
author_facet Linda Bitsch
Barbara Richter
Jon H. Hanf
author_sort Linda Bitsch
collection DOAJ
description Scholars showed that in transition and developing countries originating from the Soviet period, the degree of market competition is rather low, as large corporates that had been operating were still prevailing. One can assume that the markets had been highly attractive and many newcomers must have been interested in entering the market, due to fewer market participants, i.e. processors and retailers, but numerous farmers are engaged in the commodity production. This had provoked relatively high profitability for downstream firms acting on the local market and likely increased the market competition. However, evidence exists that market structures and hence competition is still hampered. Therefore, this study aims to show how competition in markets of transition countries has developed and provide a detailed description of the market structure to derive the degree of competition. As the subject of research, the Armenian wine industry has been exemplarily chosen as its wine industry is emerging and represents a key sector in the Armenian agri-food industry. Similar cases exist in other transitioning and developing countries. Empirical results from the qualitative research that allows a comprehensive overview of the whole sector reveal that the competition intensity is relatively low, and wine producers act in an oligopolistic market surrounding. Based on this, implications for producers and policy makers are derived, which include competitive and rural policy implications.
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spelling doaj-art-50c4d42c32a843e1b8a60b1a73d4ea712025-08-20T03:12:47ZengFirenze University PressWine Economics and Policy2213-39682212-97742022-01-0111110.36253/wep-10657The competitive landscape in transitioning countries: the example of the Armenian wine industryLinda Bitsch0Barbara Richter1Jon H. Hanf2Department of Wine & Beverage Business, Hochschule Geisenheim University, Von-Lade-Straße 1, D-65366 GeisenheimDepartment of Wine & Beverage Business, Hochschule Geisenheim University, Von-Lade-Straße 1, D-65366 GeisenheimDepartment of Wine & Beverage Business, Hochschule Geisenheim University, Von-Lade-Straße 1, D-65366 GeisenheimScholars showed that in transition and developing countries originating from the Soviet period, the degree of market competition is rather low, as large corporates that had been operating were still prevailing. One can assume that the markets had been highly attractive and many newcomers must have been interested in entering the market, due to fewer market participants, i.e. processors and retailers, but numerous farmers are engaged in the commodity production. This had provoked relatively high profitability for downstream firms acting on the local market and likely increased the market competition. However, evidence exists that market structures and hence competition is still hampered. Therefore, this study aims to show how competition in markets of transition countries has developed and provide a detailed description of the market structure to derive the degree of competition. As the subject of research, the Armenian wine industry has been exemplarily chosen as its wine industry is emerging and represents a key sector in the Armenian agri-food industry. Similar cases exist in other transitioning and developing countries. Empirical results from the qualitative research that allows a comprehensive overview of the whole sector reveal that the competition intensity is relatively low, and wine producers act in an oligopolistic market surrounding. Based on this, implications for producers and policy makers are derived, which include competitive and rural policy implications. https://oaj.fupress.net/index.php/wep/article/view/10657competition intensityindustry structurepolicy implicationsrural developmentArmeniawine
spellingShingle Linda Bitsch
Barbara Richter
Jon H. Hanf
The competitive landscape in transitioning countries: the example of the Armenian wine industry
Wine Economics and Policy
competition intensity
industry structure
policy implications
rural development
Armenia
wine
title The competitive landscape in transitioning countries: the example of the Armenian wine industry
title_full The competitive landscape in transitioning countries: the example of the Armenian wine industry
title_fullStr The competitive landscape in transitioning countries: the example of the Armenian wine industry
title_full_unstemmed The competitive landscape in transitioning countries: the example of the Armenian wine industry
title_short The competitive landscape in transitioning countries: the example of the Armenian wine industry
title_sort competitive landscape in transitioning countries the example of the armenian wine industry
topic competition intensity
industry structure
policy implications
rural development
Armenia
wine
url https://oaj.fupress.net/index.php/wep/article/view/10657
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