Robert Mondavi and the Wine Industry Case Analysis
Executive Decision Making & Strategic Analysis
Robert Mondavi and The Wine Industry,
HBS 9-302-102 (Case 1)
Post-Class Analysis
Individual Assignment
Student: Álvaro 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 market value about $ 600 million.
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 that scenario, the protagonists (Michael Mondavi and Greg Evans) should figure out how to strengthen the competitive position of the firm considering the increasing competiveness of the wine market, especially in the premium segment where they are focus on.
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. For this analysis we will use the Porter’s Five Forces Analysis.
II. Industry analysis
In order to analyze the premium wine industry we will follow the guide of the Porter’s Five Force analysis: (1) Suppliers Power, (2) Buyers Power, (3) Barriers to entry, (4) Threat of substitutes, (5) Competitive Rivalry. 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. Grapes are 50-70%
Robert Mondavi and The Wine Industry,
HBS 9-302-102 (Case 1)
Post-Class Analysis
Individual Assignment
Student: Álvaro 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 market value about $ 600 million.
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 that scenario, the protagonists (Michael Mondavi and Greg Evans) should figure out how to strengthen the competitive position of the firm considering the increasing competiveness of the wine market, especially in the premium segment where they are focus on.
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. For this analysis we will use the Porter’s Five Forces Analysis.
II. Industry analysis
In order to analyze the premium wine industry we will follow the guide of the Porter’s Five Force analysis: (1) Suppliers Power, (2) Buyers Power, (3) Barriers to entry, (4) Threat of substitutes, (5) Competitive Rivalry. 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. Grapes are 50-70%