The reports about Brazilian firms that have reverted competitive disadvantage into advantage are scarce. This paper tries to answer the following research question: How did Salton, one of the biggest firm in the Brazilian wine industry, recover its sustainable competitive advantage during the nineties after being in disadvantage for almost a decade? It was observed that during the period of dificulties, Salton preserved some of its resources and capabilities such as trade mark, proximity of physical assets to supply sources and close relationship with customers. The analysis of the present advantage of the firm indicates that several factors such as an articulated system of activities, economic of scale, full capacity of assets utilization, the process of integration with suppliers and a favorable location of assets, contribute for the maintenance of the position.
competitive strategy; resources and capabilities; system of activities; wine industry
