E & J Gallo Winery Swot

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.

A. 180 years of operation. This is one of their most compelling strengths. Being in operation for almost 200 years show the dedication the family has for the beer they produce and shows the amazing level of management they have. Just the fact that they have overcome hardships such as the great depression and the prohibition shows how powerful their management is.

Ceja Vineyards have many challenges. Their first challenge would be with their marketing plan. Currently, Ceja has a very out to date marketing plan which consists of selling their product through exclusive stores and boutiques. It also does not help that Ceja Vineyards do not operate in every state of the United States of America which in turn causes less knowledge about the company. More knowledge leads to a higher possibility of someone purchasing their product. Another challenge for Ceja Vineyards would be with their distribution channel for their Hispanic consumers. In order to target the Hispanic community, the company should reach out to larger distributors as most of the Hispanic consumers currently don’t live in the US. Ceja Vineyards

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.

Smaller firms such as the family run operations in Europe may not be able to realize these same cost efficiencies. Furthermore, grapes represent 50 to 70% of a winemakers COGS, thus the competition for sourcing high quality grape growers is quite high. Just as Mondavi does for 75% of its purchases, most premium wine makers enter into long-term contracts with growers to not only ensure that their demand is met but also to make sure that they receive grapes that are consistent in quality.

Strives to be the leader in micro brewing while maintaining the core values it started with and had employee buy in even before it went” 100 % employee owned in2013” (Gorski, 2013).

Dessert wines are very important since it makes up a large portion of the wine industry. Before Gallo upgraded their image, they had more of a brownbag jug wine image through products like Thunderbird and Night Train wines. These products for Gallo Winery do very well for the company. Consumers remain loyal to the brands, especially those that cannot afford other brands. The Gallo Company associates itself only with the

The most important necessary inputs for the production of wine are grapes, bottles and labor. Concerning the grapes, there is an outstanding difference between the traditional wine producing countries for example in Europe (the south of France, Spain, Italy and Southeastern Europe) and big wine factories that operate as oligopolies like in the US and Australia. Due to the bond to traditions and the higher demand for quality in Europe most of the wineries here still stick to the original way of producing wine, including the growth of the grapes on the land around the winery, a so called vertical integration (which is often considered by producers where the supplier's price is too high or the offer is insufficient, in our case this trend results rather in traditional and cultural values than in financial ones). This eliminates the percentage of dependence on agricultural suppliers significantly, whereas concerning a big wine company the negotiation power of the supplier is quite high. These wine companies tend to have a low sensitivity towards the price they are charged, as grapes are a crucial component of wine production. However, in both cases the price of the grapes is always

Rivera Vineyards, Inc. is a collection of several companies including, Blas Rivera Vineyards, Linda Vineyards Inc., BR Co. and Oasis Distributing. Their primary business is growing and shipping table grapes. These vineyards are located on 2,000 acres in Coachella Valley, California. Rivera Vineyards, Inc. has over 1,800 employees. Fifty-seven employees were involved in a harassment suit, initially filed by Virginia Mejia and Rosario Taylor. The primary parties involved are Latino farm workers (victims), Rivera Vineyards, Inc. (employer), and the Equal Employment Opportunity Commission (U.S. federal government agency).

Trader Joe stands by their mission statement as being a neighborhood store and a private label brand. The firm offers organic, locally sourced produce and ingredients, offering a wide variety of fresh items that are hard to find enabling the business to enjoy a distinctive competitive advantage. Additionally, through local sourcing Trader Joe’s continued involvement in local events through food donations, gift baskets and providing in store and online recipes and health guides. Apart from the many strengths of Trader Joe, the most significant is their commitment to quality at lower prices. Trader Joe has worked hard to manage the balance by sourcing directly from their suppliers. The firm states that “every penny we save is every penny our customer saves.” Similarly to WFM, their employees are its most valuable resource they possess, and as such they are treated fairly and trained to provide the first class service to Trader Joe’s customers. Each customer is given

TastingRoom Inc. has launched a new technology that allows wineries to offer authentic 50 ml sample-sized bottles of their products. The process allows for wineries to package and preserve the exact quality and taste of their wine, in a sample size bottle. This is an excellent opportunity for Stratus to promote and distribute their wine. Stratus’ eco-conscious technologies are expensive and technology has a reputation of becoming obsolete, Stratus faces the threat of their state-of-the-art technologies becoming expendable.

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 International Inc. is in the business of selling premium wine to discerning wine drinkers. The company relies on its firm resources and capabilities from which it derives its distinctive competencies. These include the ability to produce market and distribute premium New World wines to a growing market of customers around the world. The total estimated world market is worth approximately $190 billion dollars (U.S.).

Cherry Lady Company that is under Alicia Gans’ management produces premium chocolate. The organization is torn between having Epicurean Selections as the main customer and pursuing other new opportunities that are discovered in the sector. However, accepting Epicurean Selections as the key client would alter the business drastically. Therefore, there are key options that the firm has to pursue in order to make an effective decision

The success of the business is dependent on how the business interacts with its environment, which include external and internal. Strength and weakness are internal factor, which is controllable by the business. Opportunity and threats are dependent on the external environment such as the market (Houben, Lenie and Vanhoof 1999, p. 125). Healthy potion’s strength comprises of advantageous internal factors such as sale of beverage with health benefit, the price is reasonable and not costly and