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The Champagne industry in 1993

Author: Cool, Karel O. ; Howe, James ; Henderson, James W.INSEAD Area: StrategyPublisher: Fontainebleau : INSEAD European Centre for Executive Development (CEDEP) 1994.Language: EnglishDescription: 20 p.Type of document: INSEAD CaseAbstract: The case describes how the champagne industry developed, how it prospered due to the cooperation between the grape growers and the champagne producers, and how it found itself in 1993 with massive overcapacity due to a break-down of cooperation. The case poses the questions whether the future will be competitive or cooperativePedagogical Objectives: The case describes how industries may organize themselves for sustained profitability. It reviews the key institutional characteristics and the key events that led to this cooperation. It also shows the limits of cooperation and begs the question how to restore cooperation once this is lost to competitive actions
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The case describes how industries may organize themselves for sustained profitability. It reviews the key institutional characteristics and the key events that led to this cooperation. It also shows the limits of cooperation and begs the question how to restore cooperation once this is lost to competitive actions

The case describes how the champagne industry developed, how it prospered due to the cooperation between the grape growers and the champagne producers, and how it found itself in 1993 with massive overcapacity due to a break-down of cooperation. The case poses the questions whether the future will be competitive or cooperative

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