Mary Smith, a CFA candidate, was recently hired for an analyst position at the Bank of Ireland. Her first assignment is to examine the competitive strategies employed by various French wineries. Smith's report identifies four wineries that are the major players in the French wine industry. Key characteristics of each are cited in the table below. In the body of Smith's report, she includes a discussion of the competitive structure of the French wine industry. She notes that over the past five years, the French wine industry has not responded to changing consumer tastes. Profit margins have declined steadily, and the number of firms representing the industry has decreased from 10 to 4. It appears that participants in the French wine industry must consolidate to survive. Characteristics of Four Major French Wineries South Winery North Winery East Winery West Wine Founding date Generic competitive strategy Cost leadership Cost leadership Cost leader Major customer market (more than 80% concentration) France England Production site France France 1750 1903 1812 1947 5 ? France France U.S. France . Smith's report notes that French consumers have strong bargaining power over the industry. She supports this conclusion with five key points, which she labels "Bargaining Power of Buyers": Many consumers are drinking more beer than wine with meals and at social occasions. Increasing sales over the Internet have allowed consumers to better research the wines, read opinions from other customers, and identify which producers have the best prices. The French wine industry is consolidating and consists of only 4 wineries today compared to 10 wineries five years ago . More than 65% of the business for the French wine industry consists of purchases from restaurants Restaurants typically make purchases in bulk, buying four to five cases of wine at a time. Mary Smith, a CFA candidate, was recently hired for an analyst position at the Bank of Ireland. Her first assignment is to examine the competitive strategies employed by various French wineries. Smith's report identifies four wineries that are the major players in the French wine industry. Key characteristics of each are cited in the table below. In the body of Smith's report, she includes a discussion of the competitive structure of the French wine industry. She notes that over the past five years, the French wine industry has not responded to changing consumer tastes. Profit margins have declined steadily, and the number of firms representing the industry has decreased from 10 to 4. It appears that participants in the French wine industry must consolidate to survive. Characteristics of Four Major French Wineries South Winery North Winery East Winery West Wine Founding date Generic competitive strategy Cost leadership Cost leadership Cost leader Major customer market (more than 80% concentration) France England Production site France France 1750 1903 1812 1947 5 ? France France U.S. France . Smith's report notes that French consumers have strong bargaining power over the industry. She supports this conclusion with five key points, which she labels "Bargaining Power of Buyers": Many consumers are drinking more beer than wine with meals and at social occasions. Increasing sales over the Internet have allowed consumers to better research the wines, read opinions from other customers, and identify which producers have the best prices. The French wine industry is consolidating and consists of only 4 wineries today compared to 10 wineries five years ago . More than 65% of the business for the French wine industry consists of purchases from restaurants Restaurants typically make purchases in bulk, buying four to five cases of wine at a time