Mondavi analysis

Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations.

Mondavi analysis

The executives estate that, as the competitors spent considerable amount of money pursuing aggressive acquisition strategies, they are doing well on the track of organic growth of its premier brands, as they note increasing pricing of wine properties, as well they believe in the high quality brands of their portfolio well positioned in the market, and because they have an excellent management.

In this essay we will analyze the industry of premium wines in order to find how competitive it is, and to get some conclusions about the strategy that the executives of Mondavi have defined.

Suppliers Power The main supplies for the wine industry are grapes, barrels, bottles, packaging, winemaking, automation systems and labor.

Mondavi analysis

The quality of the grapes is a key factor for the quality and the unique characteristics of the wine production, thus many wineries are vertically integrated.

Usually, growers are small producers, therefore concentration of suppliers is small, and on the other hand, the grapes are highly differentiated, as their quality depends of ground, spacing, weather conditions, position related to sun, etc. That is why this supply is regulated though long term contracts, and usually wineries technically support growers.

As the key knowledge is in the wineries, threat of forward integration is relatively low. This analysis shows that this force is relatively low to moderate. Premium wines are made mainly using oak barrels, which means a relatively high cost per bottle, and the quality is also important, which mans that this supply is important for the winemakers.

But producers are not concentrated, the threat of forward integration is small, and this market is important for the suppliers, so we can infer that the force of them is relatively small.

Mondavi analysis

Other supplies are for example bottles, which are not differentiated, are not concentrated and mean a low part of total costs. Therefore, other suppliers have small force. Considering the previous analysis, we infer that the suppliers force is moderate to low, as growers have moderate to low force to wineries, as they rest of suppliers have low force related to vineries.

Buyers Power The buyers differ for each market, but in general terms we can consider that the distribution chain follows a three layer model especially in the case of USA: This three tier model was mandatory in USA to avoid organized crime, and is not longer mandatory in several estates, as well as many countries, but this structure tends to exist.

The current trend is the concentration in both wholesalers and retailers. This high concentration supposes higher buyer power, as they buy larger volumes.

In this scenario some producers have their own distributors, like Gallo. In other markets, this is also a trend, as Europe, where large firms, particularly the leading breweries, dominate the alcoholic beverage distribution.

In this sense, the buyer power is high. The well known Wal-Mart and others became very large retailers, concentrating as well high bargaining leverage. For example, Costco is currently the largest wine retailer in the U. Thus, the retailers buying force is also relatively high compared to producers, which means higher pressure to wholesalers, and therefore to producers.

The advantage for high quality premium wines is that they are able to build a strong brand reputation, which means many distributors and retailers use this wines for differentiation.

In this segment of consuming is relatively price insensible, which follows the importance of the brand identity and differentiation. This pushes down the buyer force, but on the other hand, pushes up the need of producers to be careful of the brand reputation and marketing.

In this way, the trend is massive advertisement of jug wine producers, and channel promotion of premium wineries. Distribution increasing consolidation, which means they have more force to negotiate with premium wine producers.Strategy Analysis on “Robert Mondavi and the Wine Industry” Robert Mondavi and the Wine Industry The following case study analysis the past success of Robert Mondavi (RM) as a Californian wine maker and the changes in the wine making industry that resulted in struggles, threat and – lastly – the takeover of the Mondavi Winery (MW) by.

Strategy Analysis on “Robert Mondavi and the Wine Industry” Robert Mondavi and the Wine Industry The following case study analysis the past success of Robert Mondavi (RM) as a Californian wine maker and the changes in the wine making industry that resulted in struggles, threat and – lastly – the takeover of the Mondavi Winery (MW) by.

This analysis will provide us a basis to understand if the strategy stated by the Mondavi’s executives is a consistent choice. 1. Suppliers Power The main supplies for the wine industry are grapes, barrels, bottles, packaging, winemaking, automation systems and labor.

Robert Mondavi established his namesake winery in with a vision to create Napa Valley wines that would stand in the company of the world’s finest. He chose To Kalon Vineyard in the heart of the Napa Valley as the home for Robert Mondavi Winery.

This first-growth vineyard, located in Oakville, California, is renowned for producing some of the finest Cabernet Sauvignon wines in the world. Robert Mondavi established his namesake winery in with a vision to create Napa Valley wines that would stand in the company of the world’s finest. He chose To Kalon Vineyard in the heart of the Napa Valley as the home for Robert Mondavi Winery.

This first-growth vineyard, located in Oakville, California, is renowned for producing some of . Robert Mondavi and the Wine Industry Analysis EXECUTIVE SUMMARY The Robert Mondavi Winery became one of America’s most innovative, high-quality winemakers in the late s and early s.

Mondavi Winery Case Study Solution and Analysis of Harvard Case Studies