-Economic scale.The economy in the alcohol industry is affected by the price of land to grape growing. The industry has a high hurdle because of costly investments on the basis of the production of land and the building, particularly the cost of land for growing grapes. Although the types of grapes that will grow in almost any soil, the nutrients in the soil will change the taste of wine. For example, in the United States, California is one of the only nation to have both agricultural ingredients needed to make good quality wine. Therefore, costs for finding proper sourcing is a financial burden for the new person.Moreover, the same members of this industry are eager to expand their market rather than, by the majority of revenue and their profit comes from the domestic market. They had the advantage of experience in manufacturing, financial and resources than the new opponent. This do to narrow the gap in the market for the new businesses. The market expansion policy of the opponents of this obstruction for companies that are active in the same area that affect profitability.
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