Wineries' reference points and strategic positioning: an approach to their strategic choices

PurposeThis paper aims to deepen the strategic choices of wineries by identifying their strategic reference points in their internal and external dimensions, and presenting their strategic positioning typology.Design/methodology/approachStrategic reference point theory (Fiegenbaum et al., 1996) and strategic positioning (Lavie and Figenbaum, 2000, 2003). The Rasch methodology (1960) is applied to a sample of wineries in the Canary Islands (Spain).FindingsThe principal internal reference is the quality of the wine and of the service offered, followed by social and environmental protection. The principal external reference are the customers, followed by society. Surprisingly, competitors, as an external factor, do not affect wineries' strategic choices. Strategic positioning shows a polarisation of wineries: the largest group evidences a myopic strategic positioning, attaching little importance to internal and external references. In contrast, the second group of wineries is comprised of adaptive wineries who attach considerable importance both to internal as well as external references, and who are likely emerging as competitive wineries.Research limitations/implicationsThese references urge wineries towards a conservative approach that focuses on satisfying their regular customers by offering the same quality products and services. Results also evidence a particular sensitivity towards society and the environment. Strategic positioning shows that the largest group of wineries (myopic) lack strategic orientation and are subject to high rates of failure.Originality/valueWineries' strategic positioning emerges as a tool to help management and institutions in their strategic diagnosis. The Rasch method (1960) is applied for the first time to the strategic positioning of wineries according to the choices of their managers.