Delamere Vineyard
Delamere Vineyard
“Delamere Vineyard is a small, integrated winemaking business in Tasmania, specializing in pinot noir (red) and chardonnay (white) wines. Richard Richardson, Delamere's owner and winemaker, manages and operates the vineyard and winery largely alone. His products have won praise and awards in the past, but Richardson strives continuously to improve. Delamere competes in the high-priced segment, in which quality is paramount. Richardson is well equipped as a winemaker--with a Ph.D. in agricultural chemistry and 15 years' experience.” (Harvard Business School, 2000) Winemaking is a very exclusive, yet competitive business that requires great care and understanding of customer demands.
Problem
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Often, your gut is just plain wrong – because it’s subject to biases” (HBR, 2001). Decisions that involve where a company’s future is headed and changes in operations must be made with a clear head, and the long time notion of three heads are better than one should come into play. Richardson admits that sales is dependent on the quality of the wine. The process of winemaking is difficult to specifically characterize and replicate for consistency.
Richardson has pinpointed some areas in his business where improvement can be made to set his wine apart from the competition while increasing productivity and sales. His first option involves “consideration to amend winemaking procedures to eliminate the possibility of oxidation as the wine matured. Excessive contact with oxygen, along with other chemicals, induced compounds called aldehydes, which could create a distinct and unpleasant flaw in the wine’s taste, unforgettable bitter aroma somewhat akin to stale oil, along with an unattractive browning of the color” (Delamere Vineyard, 2000). This option leads to a constant output of good quality wine. This process will allow
Richardson to attract a large amount of customers through both mail order and wholesalers due to the fact that this process can produce the same type of wine product every year. Customers tend to feel at ease purchasing wine from distributors who
Bonny Doon Vineyards, a successful winery business based in Santa Cruz, California, has grown from selling 5,000 cases of wine a year in 1981 to 200,000 cases a year in 1999. To keep growing and be more profitable, the business must choose amongst three possible strategic directions. The first strategy is to start importing wines from Europe into the United States. The second alternative is branching into a retail outlet for unusual wines of great value, accompanied by a high level of service. Lastly, the business’ D.E.W.N could be expanded to include wines not made by the company itself but by other wineries that follow the same values and philosophy.
Wine has been a popular beverage for many years amongst different societies. The process of winemaking is one of the most complex and detailed processes, where every step is meticulous towards ensuring the best quality wine is produced. However, different phenomena are able to affect the wine even after it is bottled and stored.
However, Bonny Doon is vulnerable and reliant on its suppliers, as 80% of the firm’s grapes are bought from external growers. Bonny Doon requires unpopular grape varieties and grapes that meet high quality specifications (which decreases agricultural yields and creates a trade-off for growers). They need to develop long-term relationships with the growers to ensure uniformity and high production quality with respect to the firm’s key product input: grapes. On the other side of the value chain, the firm has preferred small-medium sized distributors for their product. This has enabled them to retain higher profits, despite selling wine in smaller quantities.
Vincor does market wine alternatives itself, as a way of dealing with substitute demand. Vincor makes cider and has a wine kit business division (Spagnols) that gives Vincor some product diversification. Partly because of the ease of competition and as part of the differentiation and protection of the Canadian wine industry, Vintners Quality Alliance (VQA), a quality assurance program that identifies Canadian premium grape content, assists in making start-up more difficult for those wishing to emulate Canadian wine brands. The dollars spent on marketing and brand loyalty play a large part in protecting market share and there are certain absolute cost advantages that contribute to establishing some barriers to new competition. Ultimately, there is little cost to the consumer when considering switching brands. Experimentation in wine drinking is often a characteristic of the wine drinking market and thus can contribute to promoting new substitute entry into the market.
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Ms. Quintana CEO of Northern Napa Valley Winery Inc. was considering conducting business with Trans Continental stores to sell excess grapes from the 2008 harvest. Prior to making a decision Quintana must determine how much of the harvest should be retained for the production of Northern Napa’s own red table wine. Quintana realized that the quantity of red table wine produced is closely associated to the sales.
In America people are paid for virtually anything nowadays; but for some reason we hold our superiorly achieving college athletes to a different moral standard where they showcase their highly profitable talents for free. College athletes such as Ben Simmons and Lonzo Ball, whose names alone bring in sell out crowds everywhere they go, are not paid, yet bring in insurmountable of profit to universities that not otherwise be possible. This begs the question: Do college athletes deserve to be paid for their time, skill, and profit they bring to the universities? College athletes should get paid for their play due to the fact that their job is working for their teams, the university makes enormous amounts of money off of them, and sometimes a
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The premium wine segment is quite concentrated with high barriers to entry making mergers and acquisitions a strong and prevalent growth strategy. With industry analysts forecasting the demand for premium wine to grow at 8% to 10% per year, many former non-rivals are now becoming a threat. Jug wine producers are entering the premium market and beer and spirit producers
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This case study discusses ordering and forecasting process of the wine company Club Français du Vin. As the name suggests, this is a French company that offers French wines to the consumers trough catalog offers. The main catalog is the Etiquette, which includes a selection of 30 to 40 wines that the clients can then choose and order by mail, phone, fax or by internet. The members also receive other two leaflets, La Selection (shows three recommendations for the season) and La Cave (consists of a list of wines and corresponding prices, that are available also – this are mainly leftovers from the previous season and are heavily discounted).
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