Robert Mondavi Corporation: Study Notes

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Robert Mondavi Corporation Robert Mondavi Corporation Question one: the premium U.S domestic wine market and industry The premium U.S domestic wine market and industry had approximately 1500 players or wineries. The concentration of the wine industry had segmentations with the top ten players within the market control more than two thirds of the total production shares. The production of wine was prevalent in all states with the exception of the state of Alaska (Silverman et al, 2001). Selling of wine within the industry was in three tiers (wineries, wholesalers, and retail outlets). Threat of entry: the cost of entry into the wine market and industry proves to be cheaper hence the overwhelming number of wineries. This increases the level of competition within the market and industry thus adoption of effective and efficient strategy to compete with other wineries. This indicates that RMC had extensive competition to deal with in order to achieve the goals and objectives (Munir 2011). The power of suppliers: within the wine market and industry, the power of supplier is crucial to determine the level of competition and revenue generation (Vining, 2011). Suppliers tend to control the factors of production thus dictating the prices for the supplies. This makes it necessary for competitors to adopt appropriate prices for their products and services. The threat of substitute: wine products have limited threats from substitutes (Munir 2011). This enhances the transaction of
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