Resource-based view: Although insignificant in both size and reputation compared to the well-established industry in traditional wine-producing countries, vineyards and winemakers have been established in many New World countries since the 18th century, many of which were influenced by immigrants from the Old World wine countries. These New World countries, including Australia, the United States, Chile, and South Africa, possessed the resources and capabilities, both tangible and intangible, that enabled and improved business performance. New World countries had physical, technological, and organizational resources that added value to the outcomes. The climate and soil allowed vine cultivation to thrive in their environment, and the land on which harvesting was best suited was widely available and inexpensive, allowing for the growth of much more extensive vineyards. The territory of the Old World countries was continually fragmented and, despite advances in care and harvesting, vineyards over time became smaller rather than larger. Lack of land was a physical weakness of Old World wine producers, they had to outsource much of their grape growing and quality was compromised (yield payment), which contributed to sub-par performance. This tangible resource gave New World countries value, rarity, and the opportunity to experiment and test in the wine industry. New World producers also had intangible assets including innovation, resources, and reputational capabilities. New World vineyards brought innovation to a traditional rigid industry: the use of specialized equipment, mechanical harvesters and then mechanical pruners became the industry standard. Night harvesting was made familiar to maximize grape sugars and systems were developed with capacities that allow... middle of paper... to consume locally produced table wine, the market was increasingly driven by urban consumers of high level. Fluctuations in fashion have been a problem for growers. Although the wines had a production life of 60 years, they typically took 3-4 years to produce their first harvest, 5-7 years to reach full production capacity, and up to 35 years to produce the best quality grapes for the wine. This cycle did not respond well to demand, however, New World wine regions still had the capacity to plant new vineyards, while Old World countries struggled due to system inefficiencies and the crisis. Producers began to differentiate their products and make them more appealing to palates not accustomed to wine; they have made branding and labeling a routine part of winemaking. They used their integration to gain market power domestically, thus generating the resources and expertise to attack export markets.