Michael Porter came up with an attractive framework for illustrating the competitive advantage of a nation in a particular industry and the factors that can led to a growth of a particular industry in a specific country (Má rkus, 2008). According to Chiká n (2008), the Porter’ s National Diamond critically analyses the six main factors in the economy that determines the competitive position of the industry and how they stimulate the growth and profitability of the industry. The Porter’ s Diamond model and the brief illustration of the six economic factors in the context of a wine industry in Greece are provided in the following section. Physical resources: The successful growth of the wine industry in Greece is primarily due to the abundant resources available in the country.
The indigenous varieties of white and red grapes cultivated across the country like Assyrtiko, Lagorthi, Robola, White Muscat and Mandelaria which resulted in the production of pleasant, aromatic and superior wines blended with distinctive flavours (Thalassi Companies Inc. The abundance of resources provides raw materials to the industry at a much cheaper rate while ensuring greater profitability to the farmers because of a large scale of production.
The favourable weather conditions (plentiful sunshine, moderate rainfall) and fertile soil of the country are the main reasons for Greece being one of the oldest and largest grapes producing region in the world. Recent reports show approximately 70,000 hectares of vineyards (accompanied by 50, 000 hectares of grapes and raisins) were cultivated and they yielded approximately 3.5 million hectolitres of wines annually (Bettini, 2013). The main grapes producing regions of the country are Kavala in Macedonia, Corinth in Peloponnese and Heraklion in the island of Crete (Thalassi Companies Inc.
Apart from grapes, the greater availability of water (used in the production of wine) in Greece due to the fact that it is mostly surrounded by sea and has numerous streams flowing across the country also supported the wine industry.
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