Dominant business model consolidation processes: A System Dynamics-based analysis of the Prosecco wine industry

Abstract

Prosecco wine has become one of the widest diffused sparkling wine with 627 million bottles produced in 2021 compared to 140 million bottles produced in 2010. The spread of the product is due to a rapid growth in production capacity that has allowed a large amount of product to be placed on the market at very competitive prices. The growth of the sector has led to a radical change in the characteristics of supply with the emergence of companies with a business model based on trading, not integrated in wine production, focused on bottling and selling the product. The paper analyzes, using a System Dynamics approach, the process that determined the affirmation of the trading business model by identifying the critical variables and the relevant feedback loops structures. Resource dynamic analysis allowed us to evaluate the long-term sustainability of the dominant business model.