Robert Mondavi 's Company : A Premium Wine Making Company

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Robert Mondavi’s company is a premium wine making company he founded in 1966. The company is located in California and has grown to become one of the world’s finest and most innovative wine makers over a period of 35 years. The company has over the past enjoyed impressive growth evidenced by earnings per share growing by 28% since 1994 and market value rising to approximately $600 million. Robert Mondavi grew his company through acquisitions such as the purchase of Woodbridge winery and making major investments in the form of new wineries across California. Robert Mondavi entered the popular premium segment in the later 1970.The company also entered into a number of joint ventures and partnerships to produce premium wines. Key pressing…show more content…
The growth in popularity of imported wines from Australia and Chile further increased competition in the US wine market. Another major competitive threat is the entry of larger firms into the premium wine market segment. These firms have low entry costs due to their pre-existing market access to retail outlets and distribution networks in the country. The advent of global alcoholic beverage companies that were acquiring wineries in the US to complement their beer and/or distilled businesses further intensified competition in the wine industry. b. Technological advancement and innovation The wine industry has in the past made strides in the application of technology in the grape growing wine making process and the introduction of innovative new products. The use of technology and automation was used by New World producers to enhance the consistency and the quality of their wines and reduce operating costs. Robert Mondavi’s work with NASA in 1993 to apply remote sensing and digital mapping technologies to enhance vineyard management illustrates the company’s commitment to technological progress and innovation in its wine making business. Investment in technology led to introduction of capsule-free, flange-top bottle by Robert Mondavi, single-serve bottles, premium non-cork stoppers and clear pressure-sensitive labels by the Sutter Home winery. c. Economic environment An economic slowdown in the US

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