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Porters National Diamond Analysis

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Part 1: Porters National Diamond Analysis
1. Introduction

The purpose of this report is to evaluate the attractiveness of Peruvian wine industry. In this report, we will discover the overall competitiveness and investment attractiveness of Peruvian wine industry. Porter’s National Diamond Analysis will be used as a tool to identify the opportunities and threats of Peruvian wine industry. Two-market entry strategy will be identified and recommended. The advantages and limitations of both strategies will also be discussed in this report. Peru is located in the west of South America, and has borders with Ecuador, Colombia, Brazil, Bolivia and Chile (peru.travel) Wine industry from Peru was brought from Spain after its conquest. (Ayala)

1. 2. Factor conditions
1. 2.1. Physical resources
Peru soils are nearly level to steep. They are on drumlins and sloping to steep areas of glaciated uplands. Slope ranges from 0 to 35 percent. The soils formed in dense, loamy glacial till of Wisconsin age that is derived mainly from mica schist, granite, and phyllite. Peru soils are moderately well drained. Permeability is moderate in the solum and moderately slow or slow in the substratum. The climate is humid and cool temperate. Mean annual rainfall ranges from 30 to 50 inches and mean annual air temperature ranges from 40 to 47 degrees Fahrenheit. The frost-free season ranges from 90 to 160 days.(National Cooperative Soil Survey , 2013) The high relief and steep slopes of the streams emerging from the mountains to the east meant that it was relatively simple to divert water into canals for irrigation agriculture. (Park, 1983) Peru has a large amount of water resources, with 159 river basins. The Andes divide Peru into three natural drainage basins: Pacific basin, Atlantic basin and Lake Titicaca basin. (Farroñay, 2012) Land area (sq. km) in Peru was last measured at 1280000

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