...Malko Ebers / Simon Wied SWOT Analysis Robert Mondavi and the Wine Industry Seminar paper Dokument Nr. V27469 http://www.grin.com/ ISBN 978-3-638-29511-6 9 783638 295116 Midterm Group Project Robert Mondavi & The Wine Industry SWOT Analysis Course Strategic Management: Concepts & Cases Chair of Management, especially Strategy and Leadership University of Konstanz - Summer Term 2004 by Malko Ebers Simon Wied Malko Ebers, Simon Wied II Structure 1. Introduction ............................................................................................................... 2. Opportunities vs. Threats: Analysis of the environment the Robert Mondavi Company is settled in ................ 2.1 Global environment ............................................................................................ 2.2 The US wine industry – an overview ................................................................. 2.3 Competitive forces in the US wine industry ...................................................... 2.3.1 Potential entrants ....................................................................................... 2.3.2 Bargaining power of buyers ...................................................................... 2.3.3 Bargaining power of suppliers .................................................................. 2.3.4 Closeness of substitutes to the industry’s products ................................... 2.3.5 Intensity of rivalry among...
Words: 6310 - Pages: 26
...Robert Mondavi Wine Case Study Robet Mondavi Winery was created in 1966, in Napa Valley. At its debut the company “became one of America’s most innovative and high quality winemakers.” introducing many new techniques such as Stainless tanks or the use of small French oak barrels. Robert Mondavi “set out to educate American consumers and to enhance their appreciation of fine wine” and also became a promoter of the California wine industry. The wine industry is divided in 5 segments. RMW is has developped 16 different brands and is present in all segments except jug wine. Source image :http://image.slidesharecdn.com/robertmondaviandthewineindustrycase-130320190248-phpapp01/95/robert-mondavi-and-the-wine-industry-case-8-638.jpg?cb=1363824203 RMW bestselling wine is the Woodbridge which represented 76% of the company’s case and 57% of its revenue in 2001. But there is increasing competition in this segment with many important companies entering this segment. In the mid-90’s Mondavi launched 3 joint ventures with French, Italian and Chilean’s firms. “Mondavi owned and leased 9’700 acres of vineyards in California and the joint ventures controlled additional 1’600 acres in Chile, Italy, and California.” But these vineyards provide only 7% of the company’s total grape supply in 2001. Although the firm did invest a lot in the 80’s and 90’s, acquiring many wineries in California, the production could not keep up with increasing consumption, making the firm highly dependent on its...
Words: 1698 - Pages: 7
...House of Mondavi: The Rise and Fall of an American Wine Dynasty by Julia Flynn Siler November 2004, the house of Mondavi took its final stand when accepting a $1.3 Billion bid from Constellation Brands, ending a family run business of over 100 years. This family business marks the effective beginning of the American wine industry, credit for establishing Napa Valley, and recognized as Unites State’s largest wine producer. Julia Flynn Siler, a writer for the Wall Street Journal, tackles the complicated story of the clashing Mondavi family, in her book, The House of Mondavi: The Rise and Fall of an American Wine Dynasty. After hundreds of interviews, Julia was able to give picture perfect descriptions of each character and their role in the Mondavi family business. The book starts by telling the story of Cecar and Rosa; two Italian immigrants who lived a poor life economically but rich with love. They both had an admiration for wine and enjoyed hours of quality family time appreciating every spectrum of the grapes. Julia went back to Indiana, where the Mondavi’s originally lived, and found out that the couple just followed their heart, moved to California with the solemn goal of becoming wine connoisseurs. Once the Mondavi’s got to California they realized their knowledge of wine surpassed those of the current winery owners and invested in their first wine garden. Roberto and Peter Mondavi, the second generation, both inherited Charles Krug Winery, the first...
Words: 846 - Pages: 4
...forces driving changes in the structure of this industry. The paper accomplishes these objectives by applying concepts from industrial organization economics, agency theory, and the field of competitive strategy. T he economic structure of an industry affects the intensity of competition and the average profitability of firms in a particular market.1 While strategy scholars have debated the extent to which industry structure explains differences in firm profitability, virtually no one disputes the idea that structural forces have a sizeable impact.2 More recently, researchers have demonstrated that industries exhibit substantial structural differences across various geographic markets around the world. These structural differences are driven by institutional heterogeneity and contrasting patterns of historical development. 3 Over time, the structure of a global industry can change dramatically. In particular, many industries have experienced consolidation in recent years. Industry consolidation raises several important questions for scholars and practitioners. First, why do these structural shifts take place? Second, do structural differences across geographic markets persist as consolidation begins to occur? Finally, do firms that actively pursue global consolidation strategies create value for their shareholders? The wine industry offers a unique opportunity to examine these questions. There are substantial differences in the structure of the wine industry around the world...
Words: 7130 - Pages: 29
...beverage”- Robert Mondavi 6000 B.C- is the time when, Mesopotamians first began to produce Wine. Since then Wine is playing an important role as enjoyable, romantic and authentic beverage for the people of all the classes. As the centuries passed, Europeans introduced their Wine making techniques to the rest of the world including America, Australia and South Africa. 1966- To become the first winery in California to produce premium Wine brands that would compete with the other premium wine brands of the world, Robert Mondavi founded the RMC Winery. With the clear strategy of gaining high reputation in premium wine segment, RMC at very inception align its business plan with its competitive strategy. As to produce limited quantity of super to ultra premium wines using high quality grapes, this helps them to build diversified brand portfolio particularly in price points and niches premium Wine market. Again as a part of their competitive strategy RMC lead the Wine industry in several process innovation and operational improvements including gentle grape handling, cold fermentation, stainless steel fermentation tanks and Oak barrel aging. In 1972 Los Angeles Times recognized RMC’s Cabernet Sauvignon as the best Wine produced in California. At marketing front to stimulate demand, RMC took some notable steps like Tours of Winery, Training sessions at fine restaurants, this helps them educate American consumer to enhance their knowledge and appreciation of Mondavi Wines. 1976- RMC...
Words: 1530 - Pages: 7
...Executive Summary & SWOT Analysis of Robert Mondavi and Wine Industry By Bilal Quadri Brad Ufkes Katie Leeb Shane Miller Saswat Tripathy George Brown College HOST – 4113 International Culinary Strategies Professor James Smith Thursday, March 31, 2011 Executive Summary Since 1966 Robert Mondavi has been creating innovative wines and today is one of the world’s finest brands valued at $600 million. Due to the recent economic downturn, Mondavi and general wine sales have slowed forcing the global wine industry to consolidate. Industry consolidations began to occur to New World producers by premium wineries purchasing or merging with rivals, jug wine producers’ acquiring premium wineries in order to keep pace with changing consumer tastes, and lastly alcoholic beverage firms diversifying into the premium wine market. Despite these types of consolidations Mondavi remained an independent company relying on the U.S. market for sales. While competitors spent money pursuing acquisition strategies, Mondavi chose to focus on the organic growth of its popular premier brands. Today the global wine industry reports retail sales ranging from $130 to $180 billion in the classifications of: jug or commodity, popular premium, super premium, ultra, and luxury wines. In the United States, jug wine sales had declined approximately 3% per year over the last 10 years, while premium wines increased 8% to10% annually. A shift toward high quality premium wines is occurring...
Words: 907 - Pages: 4
...Case Background Robert Mondavi is one of the pioneers of the wine industry and can also be credited to bringing the wine industry to the Americas from Europe. Robert Mondavi began wine making in the relavitely then new region in California back in 1943 and has since become the most innovative and leading winemakers in America. Initially to stimulate and create a market for wine drinkers in America, Robert Mondavi embarked on a journey to educate and enlighten the American people about the culture of enjoying wine and food, this soon also became integrated into the mission and the vision of the organization. Later on in the 70’s Robert Mondavi entered into the popular premium wine segment and also bought a local co-operative winery to handle production, in addition to partnering with a French winery to manufacture a premium wine for the first time in America, the company remained stable and in its initial state till the 90’s. In 1993 finally Robert Mondavi offered a public offering to boost investments and generate capital for land acquisitions and wine replanting due to a virus which has eliminated almost 90% of the crop. Throughout the 90’s Robert Mondavi had controlled expansion with some big projects like the mapping technology developed with NASA and also foreign partnerships with wineries in Chile and Australia. Problem Statement Michael Mondavi and Greg Evans have realised that since their markets are heavily dependent on the US markets, they face a legitimate threat...
Words: 859 - Pages: 4
...Autumn 15 ROBERT MONDAVI WINE INDUSTRY Dougal POGET & Caroline MULHAUSER U N I V E R S I T Y O F A P P L I E D S C I E N C E -‐ G E N E V A H A U T E E C O L E D E G E S T I O N – G E N E V E Mondavi Wine Industry – Case Study Dougal Poget & Caroline Mulhauser TABLE DES MATIERES 1. Read, reflect on and analyze the company situation within the context of a changing wine industry. ................................................................................................................ 4 2. Think about an outline all of the external, internal, competitive, market, and consumer factors, changes and trends affecting Mondavi in their business model. 5 External factors: ......................................................................................................................................... 5 Internal factors (Integration level) ...................................................................................................... 5 Competition ..............................................
Words: 3781 - Pages: 16
...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 are supermarkets and other off-premise locations in Europe, which will allow more buying power to consumers. Whereas, the variety of wine in the New World brings in differentiation in products, which leads to lower buying power. In terms of power of suppliers, Wineries in Europe is are not much exposed to the external force because they use grape mainly they produce for higher quality of wine. However, the makers in the New World depend on outsourcing to some extent. Therefore, the power of supplier is stronger in the New World. However, in terms of risks involved in the grape farming, the outsourcing can helps diversify the risks. In addition, the regulatory environment in Europe restricts the European wine makers to diverse...
Words: 1279 - Pages: 6
...benefits and drawbacks to the Mondavi Winery of becoming a public company? 300 words maximum Once the Mondavi Winery becomes a public company, there will be an immense increase in its equity and it can be used to fund Mondavi’s rapid growth. Despite the fact that family control can be retained by designing the rules of IPO, the uncertainty degree would still be higher than the company used to be. The fluctuation of share price would also affect the company image. Moreover, Mondavi’s historical financial performance, which had previously been a guarded secret, was made available to the public. 2. What types of investors are most likely to be interested in the company? How could you target those investors? 300 words maximum Wine stocks appeal to ‘the hobby stock holder’ who wants to be part of this industry. Investors can be targeted through the following process: 1. Look for wine lovers who know how to appreciate US-made premium wines. Some useful sources may be obtained from wine-related clubs, associations and institutes. 2. Hold social fairs or other events and share stories and visions with these potential investors instead of simply analysing financial data to have them involved in picturing a better future with strong evidences. 3. Emphasize on the expected big leap of Mondavi, which may serve as a growth booster of the whole US wine industry to arouse the need of purchasing Mondavi stock. 3. How would you recommend Robert Mondavi respond to the market’s current...
Words: 377 - Pages: 2
...distributors and retail channels. For instance, the retail and hospitality programs at the Beringer, Chateau St. Jean and Chateau Souverain wineries - which receive over 350,000 visitors a year - create brand awareness and build customer brand loyalty (Burns et al., 2001).Next, although RMC is not the price leader in the wine industry, nevertheless, the company benefits from the high prices set by its limited production of Opus One which is priced between $90 and $100 a bottle in more than 65 world markets.RMC proves to have some strong key competitive advantages which distinguish the company amongst other rivals. Firstly, Robert Mondavi, being a dynamic sales man in the early years, never spent money on advertising. Instead he relied on trade shows, awards, salesmanship and showmanship. This is clearly described in the case study in which he spent entertaining influential people within the industry and invited the top wine writers to the RMC facility for free meals (Silverman & Castaldi 1999). In addition, he would conduct blind tasting of the RMC wines against reputable French and Italian wines so that the writers could taste for themselves. For over a decade, Mondavi traveled throughout the country and abroad as the company's chief salesperson. Consequently, the RMC wines were able to increase its recognition of and demand for the wines, Mondavi began slowly raising the prices until they were selling for as much as comparable French wines (Thompson & Strickland 2003).Secondly, RMC's...
Words: 2844 - Pages: 12
...HALL Wines Napa Valley and Sonoma, California GROUP 16 Chad Burns Ryan Carlson Maurilio Cometto Kathryn Hall BERKELEY COLUMBIA MBA MARKETING STRATEGY CASE PROFESSOR NOEL CAPON SUMMER 2006 Table of Contents The individuals in connection with this report are: Berkeley Columbia MBA Summer 2006 Group 16: Chad Burns Mauriilo Cometto Ryan Carlson Kathy Hall Page Executive summary Preamble: Introduction to Hall Wines Headlines Situational awareness Market overview Customer insight Competition and complimenters Market strategy Achieving differentiation Market segmentation Branding strategy Implementation plan Marketing offer Distribution plan Metrics for success Appendices 75 102 119 123 46 53 71 14 26 32 2 4 1 Executive summary Preamble: Introduction to Hall Wines HALL is a relatively young winery in startup mode. HALL is comprised of two wineries located in St. Helena and Rutherford, Napa Valley, California. In addition to the two wineries, vineyard land is located in other parts of Napa and Sonoma counties. A total of five primary vineyards are owned by HALL. HALL is not yet profitable. Current case production of all HALL Wines approximated 8,500 cases in 2005 with 47,000 cases projected in 2010. Company overview HALL is the dynamic Napa Valley vision of Craig and Kathryn Hall created in 2002 as a showcase for both their exceptional new wines along with their extensive vineyard holdings. The Halls have sought first and foremost to craft wines of uncompromising...
Words: 26398 - Pages: 106
...and relatable. Winetasting (and drinking in general) tends to spark up conversation. For instance, when I toured the Terlato Family wineries in Napa, the man that was providing us with various wine samples (while also sampling them himself), decided to share a special wine with us. Of course, the “special” part of the wine was centered in its story. One day while workers were installing some posts to brace up the grape vines, they bumped into something hard in the dirt. The workers removed the object from the ground and, to their surprise, discovered that it was a tomahawk. Further research on the tomahawk confirmed that it was a genuine Native American weapon that dated back several hundred years. The vines that were in the immediate vicinity produced their best tasting wine, which they properly named “Tomahawk.” It just so happens to be their most expensive wine as well. Here I am several years later, bragging about this Tomahawk wine that I got to try and why it has its name. Hosting potential consumers at Ceja Vineyards is a great way to share a unique story from the source. The humble beginnings started in Mexico, where two separate uneducated/poor families made the decision to pursue opportunities in the United States for the sake of their children. Hard work led to a position as a foreman for the maverick of the wine industry, Robert Mondavi. Meanwhile,...
Words: 1790 - Pages: 8
...acquired in 2001. Other major wine labels include Wynns and Seppelts--the company has been working to reduce its total number of branded wines to under 850 by the end of 2003. In total, Southcorp owns more than 8,000 hectares of vineyards, and is the largest single landholder in the highly prized Coonawarra region. The company's combined volume, excluding bulk volumes, topped 22.2 million cases in 2001. The company's core brands, including Wynns, accounted for nearly 14 million cases. The United States represents a primary market for Southcorp, absorbing more than five million cases, while Europe accounts for nearly 7.5 million cases of Southcorp-produced wine. The company also owns small winery operations in the United States, where it has formed a joint venture partnership with Robert Mondavi, and in France, where it holds the James Herrick brand. Originally a beer brewer turned diversified conglomerate--the company's former holdings included a large water heater business--Southcorp has transformed itself into a focused wine group, completing the divestment of its water heater operations in 2002. Listed on the Australian stock exchange, Southcorp posted total group sales of A$2.82 billion (US$1.59 billion) in 2002. On 13 January 2005, Foster’s Group Limited announced the purchase of an 18.8% interest in Southcorp Limited from Southcorp’s largest shareholder, Reline Investments Pty Ltd, the Oatley family’s investment vehicle, for AU$4.17 per share in cash, valuing the stake...
Words: 2555 - Pages: 11
...Groups 2, 5 and 5: Wan Chew Yoong Office: S3-1C-80 Tel: 67905651 email: acywan@ntu.edu.sg Course Description and Objective The Strategic Management Course focuses on identifying and understanding the sources of superior firm performance. This course introduces theoretical concepts and frameworks useful for analyzing the external and internal environment of the firm, and guiding the formulation and execution of different types of strategies. Strategic issues are examined from the perspective of a chief executive or general manager, focusing on how one can formulate effective strategies and develop the necessary resources and capabilities to achieve sustainable competitive advantage in a global and volatile competitive environment. Learning Goals At the end of this Course, students should be able to: synthesize information to recognize the external opportunities and threats as well as the internal strengths and weaknesses that impact a firm’s competitive advantage. critically evaluate how a business, corporate and/or international strategy would lead to sustainable competitive advantage. analyze complex and dynamic interdependencies among strategic issues. identify ethical issues and exhibit informed ethical judgment when faced with an ethical decision. Learning and Teaching Methods This course is structured in a seminar learning format, where a 4-hour seminar is conducted every week for a total of 13 sessions. Each seminar is intended to inform and equip students ...
Words: 4166 - Pages: 17
