Part 1 How do you go from knowing next to nothing about the wine industry in 1986 to becoming the top-selling brand in the United States and changing the entire culture of the wine industry? That is what Michael Houlihan and Bonnie Harvey did, but the journey was not a walk in the park. In the 1980s, the wine industry was cloaked in a culture about as staid and dull as it could be. The average person was intimidated by the language and the snobbery associated with fine wine versus table or jug wine. It was at that time that Mark Lyon, a respected winemaker, was having trouble collecting on 300 tons of grapes he had sold to Souverain, a Napa Valley winery that was experiencing financial troubles. His employee Bonnie Harvey, who managed his books, and her boyfriend, Michael Houlihan, decided they wanted to help and contrived a way to barter with Souverain to get Lyon's money back. They would use the vintner's bottling facility to bottle and sell 18,000 cases of wine. The hitch was that Lyon had no interest in running the new business they would need to form. That's when Houlihan and Harvey stepped up and said that they would own the business and do that end of the work and Lyon could work for them as a winemaker. Houlihan and Harvey wanted to change the wine industry and this was their opportunity. With a deal struck, they were on their way or so they thought. Answer questions 1 and 2. Based on what you read in the chapter and what you know about the importance of an industry to a new venture's profitability, how would you characterize the wine industry in the 1980s in terms of barriers to entry and potential competitive rivalry