Mondavi Case - 1273 Words

Case 3 Robert Mondavi and the Wine Industry 1) Evaluate the structure of the global wine industry? How and why is that structure changing? What threats do these changes present for Robert Mondavi? 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 Old Market consumers are more sophisticated and price sensitive than those in the New World. The main sales channels†¦show more content†¦Its bread and butter products face severe competitions. Woodbridge, for example, contributes to 57% of Mondavi’s total revenue but the competitors such as Gallod or Beringers’ are trying to penetrate into the market with aggressive prices and new brandings. Also, the competitors are spending money for marketing and promotion activities in sophisticated ways while Mondavi revamped its marketing messages recently. 2) How attractive are the economics of owning a vineyard of 100 acre in Napa Valley? Would you invest in such a venture? And why or why not? It depends on what types of products one plans to produce using the land. Since the winery business requires high investment in real property, it is important for one to make an investment decision on what market segment it wants to play in. Napa Valley is widely known as a good place for staring a vineyard and the land price is relatively higher than anywhere else in the US. The initial investment would affect the cost structure, which eventually drives up the price of wine. For example, budget wine consumption is very price sensitive and some competitors are trying to maintain their competitiveness with a lower price. If a company decides to produce wines from the winery in Napa Valley, soon, it would be forced to put a premium on the wine price to maintain a level of margin and ,eventually, the company would lose its competitive edge if it is a price player. However, for aShow MoreRelatedMondavi Case Analysis1152 Words   |  5 PagesIdentification: Overview of current situation: Making wine is nothing else but a touch of passion, love and few drops of magic. From the first view, wine industry seems very artistic and secret at the same time. There is no doubt that hearing that Robert Mondavi Corporation is going to layoff 4% of its workforce ring the bell to the investors, at the same type the stock price dropping down dramatically makes an impression that the company is going through difficult period as the senior management is uponRead MoreCase Study: Robert Mondavi Corporation5619 Words   |  23 Pages1. EXECUTIVE SUMMARYÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…..5 2. BACKGROUND OF THE CASE STUDYÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â….6 3. ANALYSIS IMPLICATIONS OF PORTERS FIVE COMPETITIVE PRESSURESÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…..7-17 3.1. The Potential Entry of New Competitors 3.2. Competitive Pressures from Substitutes Products 3.3. Bargaining Power of Buyers 3.4. Bargaining Power of Suppliers 3.5. The Rivalry among Competing Sellers 4. ANALYSIS OF THE STRATEGIC GROUP MAPPINGÂ…Â…Â….18-20 5. KEY SUCCESS FACTORS OF THE WINE INDUSTRYÂ…Â…Â…21-23 5.1. World famousRead MoreRobert Mondavi Case Study3082 Words   |  13 PagesStrategy Analysis on â€Å"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 Constellation Brands in 2003. In addition, it will provide some thoughts on strategic moves to enhance the future success of the MW. A. Analysis of Past Success Read MoreRobert Mondavi Case Review Essay3115 Words   |  13 PagesRobert Mondavi Case Review Robert Mondavi Corporation Robert Mondavi began making wine in Napa Valley in 1943. He started working in the wine industry with his family. He later started his own winery in Oakville, California. Mondavi, along with his two sons, Michael and Timothy, would guide the Robert Mondavi Winery to the strong position the company enjoys today. Mondavi introduced many new techniques to the California wine industry that included cold fermentation, stainless steel tanksRead MoreRobert Mondavi and the Wine Industry Case Analysis2143 Words   |  9 PagesExecutive Decision Making Strategic Analysis Robert Mondavi and The Wine Industry, HBS 9-302-102 (Case 1) Post-Class Analysis Individual Assignment Student: à lvaro Toro I. Executive Summary On May 2001, Michael Mondavi took over the position of chairman of Robert Mondavi Company, as well Greg Evans assumed as CEO. They company was founded in 1966, and has became one of the world’s finest and most innovative winemakers, currently having sales for 480 millions, and firm’s marketRead MoreEssay on Strategic Analysis of Robert Mondavi Inc.2799 Words   |  12 PagesRobert Mondavi Corp. Analysis I. Summary #61607; Company founded in 1966 by Robert Mondavi in Napa Valley, California #61607; Company vision to make California a recognized wine producing region alongside great winemaking regions of Europe #61607; Major focus on technology and wine growing techniques #61607; Production of premium to super ultra premium wines #61607; Mondavi focuses on personal sales, wine competitions, and lavish parties to promote the wines rather than conventionalRead MoreMondavi Procurement Management1959 Words   |  8 PagesMondavi Procurement Management Procurement is the complete process or action of acquiring or obtaining material, property, or services at the operational level, such as purchasing, contracting, and negotiating directly with the source of supply. Procuring goods and services is a larger process than just the label price of wine; the process to buy those items includes major organizational costs, often accounting for half of the product price. When allowing for the vast number of purchases MondaviRead More Robert Mondavi Corporation Essay5460 Words   |  22 Pages 1. EXECUTIVE SUMMARY†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..5 2. BACKGROUND OF THE CASE STUDY†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.6 3. ANALYSIS IMPLICATIONS OF PORTER’S FIVE COMPETITIVE PRESSURES†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..7-17 3.1. The Potential Entry of New Competitors 3.2. Competitive Pressures from Substitutes Products 3.3. Bargaining Power of Buyers 3.4. Bargaining Power of Suppliers 3.5. The Rivalry among Competing Sellers 4. ANALYSIS OF THE STRATEGIC GROUP MAPPING†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.18-20 5. KEY SUCCESSRead MoreMondavi Analysis1009 Words   |  5 PagesRobert 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 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 regionRead MoreMondavi Wineries - Strategy1081 Words   |  5 PagesI. Summary Mondavi Wineries intends to grow the company’s wine market share organically, without benefit of established wine acquisitions or joint ventures. An analysis of the industry and competition should help establish future strategic course. II.a. Barriers to Entry The industry contains excessive barriers to enter the wine production market. First, the wine industry requires quite an extensive amount of financial resources. In New World and European markets, costs of premium wine land