Robert Mondavi 's Company : A Premium Wine Making Company

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.

The structure of the wine industry is quite different around the world. The barrier to entry is relatively higher in the New World than in the Old World. Referring to the market data on the level of concentration in 1998, people can see a few players dominate the markets in Australia and the U.S. while the level of concentration is quite low in Europe. Therefore, the rivalry in Old World is intense there.

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

The dynamics of the global wine industry are better understood through a brief history of wine as well as an overview of the wine making process. Some countries have longer historical and cultural ties with wine then others and that can affect the quality and perception of the product in the eyes of the consumer. Also, the conditions in which the wine grapes are raised and the processes used to make the wine can create a superior wine and therefore a competitive advantage.

Valley Winery was founded in 1933 and has risen to be the largest domestic producer of wine in the US. The company has more than 40% of market share in the US and

Wine production involves two parts of economic activity – viticulture and wine making in the winery. In the global context, wine production is dynamic due to the influence of globalization, technological advancements and extensive research. These have essentially influenced the nature, spatial patterns and the ecological dimensions of the wine industry.

The buyer’s power within the wine industry varies between different places in the world. There are for example strategic differences between Europe and the “New World”. The “New World” includes countries like the US, Australia, Chile and South Africa. In Europe there is a big competition

Chateau de Margaux is one of the world’s most renowned premium wine brands for many decades. Their wine offerings include only the first-growth and the second-growth wines. The company been profitable and is considered a very highly reputable and successful premium wine brand from the region of Bordeaux, France. Being successful and profitable often bring up questions like, how can the company do better? With the increasing demand for wine around the world and the increase of number in new wine producers around the world with exceptional potential, could the Chateau de Margaux still be competitive in the future? What are the possible ways for this company to expand and what are the pros and cons of each?

Bonny Doon currently has an enviable position in the 1990’s Californian wine-producing industry. The company has successfully differentiated itself from its competition and achieved a first mover advantage in terms of selling “undervalued” wines. However, due to increased rivalry and a changing and increasingly challenging market,

Vincor’s strategy is based on its distinctive competencies (such as world renowned wine making experience, vineyard development and ownership, and the ice wine product/brand) and centres on an acquisition and takeover formula (sometimes with a joint venture component). The company

In the wine industry, it is said that, “In order to make a small fortune you need to start out with a large one” (C-392). When Mr. John Williams rolled into the Napa Valley, he had never heard of this before, but began to understand when his loans accumulated to $22 million over the last 27 years. Before he began his business known as Frog’s Leap Winery in Rutherford, California, Mr. Williams returned to Napa Valley straight after college breaking into the wine industry by becoming head winemaker at Spring Mountain in 1980. Later that year, he married his wife, Julie Johnson. Another year later, John Williams and Larry Turley form what is now known as Frog’s Leap Winery in Napa, and in 1984 Frog’s Leap hires Julie as their first employee.

Since Cork’d inception in February 2006, the company was designed for and by wine lovers. Time showed that this industry had such a demand that needed more dedication and that is when

The Robert Mondavi Winery became one of America’s most innovative, high-quality winemakers in the late 1960s and early 1970s. There are over 1 million wine producers worldwide and no winery accounted for more than 1% of global retail sales. Because of this and the fact that there are many substitutes, there is an issue to try to gain economies of scale and become a leader in the wine market. Wine tends to stay it its local region, which makes it harder to compete with its substitutes. In the strategic analysis portion of this case analysis, we discuss Porter’s Five Forces and how they affect the Robert Mondavi Winery. We conclude that in order for the winery to stay

The acquisition of other wineries has made it possible for Mondavi to make strategic moves in their plans and strategies. The acquisition will bring together complementary wine assets, including vineyards, production facilities, and distribution capabilities that will strengthen Constellation 's portfolio and further build the Robert Mondavi brand. (6) Acquisitions and mergers are popular in the wine industry. Mondavi 's s long-term goal is to own 25 percent of its grape production.

I would recommend U.K market because both in volume and value U.K is being importing higher than U.S. U.K has easy procedure to distribute nationwide than U.S. U.K has a perfect platform to excel in branding and building the image. U.S is lacking in distribution, numerous different markets and there are more domestic wine producers. Therefore, I would definitely recommend U.K. and in terms of distributor; I would recommend distributor who had worked in 1996 because Montgras gained 75% of sales through restaurants. Moreover, the fixed tax of £1 makes this a great market for reservas regardless of retail price. The expensive wines might be at least twice the quality lower end wine in terms of quality of the wine