Wine Industry Rating: Application of Factor Analysis

Abstract

This paper analysis a sample of Portuguese producers and bottlers wine. It proceeds by factor analysis in order to capture meaningful dimensions of performance assessment. As a result 4 dimensions are highlighted both from a statistical point of view and from a facial validity test: financial performance; size; efficiency and quality. These dimensions don’t overlap significantly and provide a reasonable portrait of the competitive landscape. Moreover, the results are a good basis for evolving into cluster analysis at future research programmes.