1. The Online Wine Industry Abhiroop Gandhi Sudhir Gopal Maximiliano Hernandez-Toso Raghu Kakumanu Eungsang Kim

2. The Value Chain and EC 1 st Tier Domestic Wineries and importers that either produce or represent the producer 2 nd Tier Wholesalers purchase wines from domestic wineries and importers 3 rd Tier Retailers, restaurants` E-commerce could be used at different points in the in the industry value chain. We will focus in B2C possibilities Consumer Vine B2BB2B B2BB2B B2BB2B B2CB2C Regulation Authorities B2G

3. Buying wine online Consumers sign up and enter their orders online with a winery Purchase process: log in browse by wine category select a basket of products arrange for delivery pay using a credit card

4. A Sample Winery

5. A Sample Winery (2)

6. A Sample Winery (3)

7. A Sample Signup Page

8. A Sample Signup Page (2)

9. Major Online Wine Sellers Awinestore.com Wine.com Gourmet Market K&L Wines Internet Wines Palmer Vineyards Wines.com Virtual Vineyards WineShopper.com

10. Value Proposition Many items to choose from Most orders shipped very quickly Tracking numbers emailed back to you Elegant shipping and packaging Very competitive price Product customization (you can design your own labels) Offer advice on selecting the appropriate wines for and occasion

11. Who are the customers? Consumers Individual Consumption Gifts Corporations (corporate gifts) Retailers Restaurants

12. How do they attract customers? Group affiliation Word of mouth Media advertising Direct mail Referrals

13. Turning one-shot customers into repeat customers Firms rely on excellent customer service to bring people back Maintain an excellent product portfolio Build brand image and credibility Provide newsletters and updates on special offers by email Encourage membership and clubs

14. Policy Issues and Barriers to Entry Because alcohol is a state-regulated product rather than a federally regulated one, there are basically 50 different sets of laws. The only common law among the states is that wine or any alcohol must travel via the three- tier distribution system— from producer to wholesaler to retailer— before it reaches the consumer. Impending legislation may help strengthen the market for internet wine sales.

16. Conclusion “Legislation is the major barrier for the emergence of the Amazon.Com of wine”