Strategic Analysis of Robert Mondavi Inc.

Robert Mondavi Corp. Analysis
I. Summary
 Company founded in 1966 by Robert Mondavi in Napa Valley, California
 Company vision to make California a recognized wine producing region alongside great winemaking regions of Europe
 Major focus on technology and wine growing techniques
 Production of premium to super ultra premium wines
 Mondavi focuses on personal sales, wine competitions, and lavish parties to promote the wines rather than conventional advertising
 Mondavi has a portfolio of premium to super ultra premium wines to fill various price points and niches in domestic wine market
 1981 Opus One joint venture with Baron Philippe de Rothschild
 Through 1980's and 1990's, Mondavi acquires many wineries and vineyards throughout California
 Mondavi develops national following
 Phylloxera (vine killing insects) begin to infiltrate California vineyards
 1993, Mondavi, in need of capital due to extensive acquisition expenditures in previous decade plus the replanting costs, issues public shares
 In the mid-1990's, Mondavi begins 3 joint ventures with a Chilean, an Italian, and French firms
 Wine production in California accounts for more than 70% of wine consumed in America
 Wines in America are sold through a three-tier distribution
 100's of wineries emerge in California,
 90% of Mondavi's revenues generated domestically II. Case Profile

Problem/Issues in Case

 Managing multiple brands in the global markets
 Maintaining domestic market share while foreign competitors enter U.S
 Accurately forecasting demand and acquiring necessary wine grapes

Supporting Statements

 By 1998 Mondavi has about 4% domestic market share (fifth largest)
 U.S. wine exports make up only 4% in the international market places despite being the fourth largest producer of wine in the

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