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FACTORS INFLUENCING THE HUNGARIAN VINICULTURE’S COMPETITIVENESS ACCORDING TO BALÁZS VÁCZI
Michael Porter defined the international competitiveness of an industry in 1990. He identified the following four factors that determine the international competitiveness:
Resources, and the use of them
The structure of the sector
Demand of the domestic market
The development of other connected economy areas
The results of the Hungarian wine sector’s examination were the followings:
On the supply side, the Hungarian agriculture is in a very bad position. ... Interestingly it is not possible to count price flexibility or income flexibility, perhaps because the consumption and the way of the consumption of these alcoholic products depend more on socio-cultural factors rather than on price or income. ... This advantage can be derived from many production factors, like labour, material, machinery, etc. What may be these factors for the Hungarian winemakers? ... In my opinion that was the problem with Hungarian wines after the change of the regime.
Approximate Word count = 746
Approximate Pages = 3
(250 words per page double spaced)
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