Case Study

1

To what extent is the cork industry guilty of complacency and a lack of innovation? They did not consider the need of the customers. Customers want easy access without spending additional funds to remove a cork.

2

If consumers love corks, why are the producers not providing what their customers want? Because the Portuguese cork industry is facing an environmental and economic disaster as wine makers and large grocery chains defect from natural cork closures to modern synthetic closures, such as rubber or plastic. The reason being is because the wine industry has changed significantly over the past twenty years. The historical dominant producers of Europe - France, Germany, Italy, and Spain - are being challenged by new wine producers such as California, Australia, New Zealand, South Africa, Chile, etc. The new producers have developed international wine brands which have changed the wine market. The international brand has demanded a consistent product with little variation. Unlike the traditional wine product which had a degree of variety dependent on the grape, the climate and production. Also they buyers were changing due to supermarket chains.

3

Is it wine quality or costs that have driven producers to synthetic? Most wine purchased by the supermarkets today is led by financial motives, which are driven by cost sheets and market forecasts.

4

How could technology forecasting have helped the cork industry? If the cork industry would have done technology forecasting early on then this could have helped them in investing in research and development to improve cork closures and produce at a lower cost product before any of the competitors could have done so.

5

What level of R&D investment would be required to help the industry diversify and develop new opportunities for its materials? According to our text, because the cork forests are facing environmental stress, it would require high levels of R&D investment to open new opportunities for cork materials. When referring to new opportunities it would be new items, such as, floor and wall coverings, coasters, cork board sheets, etc. A high level of R&D ca...

6

What portfolio of R&D projects would you establish for the cork industry?

7

What role have the wine buyers (end users and others in the supply chain) played in contributing to the fall in demand for cork as a closure?

8

Discuss the issues of sustainability and innovation in this ancient industry of the production of cork wine bottle closures.