Modelling the group dynamics in the wine industry

Purpose One of the main difficulties for wine managers is understanding and interpreting how some strategies company behaviours could affect firms’ performance. This study aims to contribute improve these concerns by examining evolution competitive industry structure over time using strategic group membership dynamics approach. Design/methodology/approach empirically analyses a data set spanning period 2004–2014 identify groups in Spanish model their time. A inhomogeneous hidden Markov (HMM) used this purpose. Findings Three are identified: Young Makers, Quality Lovers Major Players. Makers small wineries that produce low-quality wines. They not part collective brand – Protected Designation Origin do invest marketing campaigns. highest quality wines but offer narrow assortment. modestly advertising, most them belong Origin. Players medium-quality wines, wide assortment heavily advertising. The seem stable Practical implications results show analysis can be compare patterns activity within industry, providing better environment. Originality/value No previous studies have analysed industry. delineates groups, which supported valid econometric model. Therefore, from theory base perspective, adds new evidence stream research on investigating effect