Abstract for: Dominant business models and sustainable long-term growth. A System Dynamics based analysis of the Prosecco wine industry
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 analyses, using a System Dynamics approach, the process that determined the affirmation of the dominant business model by identifying the critical variables and the relevant feedback loops structures. We focus on resource dynamics to evaluate internal consistency and long-term economic sustainability of the dominant business model.