Mondavi Analysis

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.

McManisis currently in a pretty good situation from a strategy standpoint. Although overall wine consumption is dropping across the board, label laws are making it possible for Northern California wineries to add up to 25% of total grapes from regions outside of their own. By extension, this allows these wineries to charge a higher price, while having a lower overall cost. McManis’

With per capita wine consumption increasing and per capita beer consumption decreasing, Stratus has the opportunity to capitalize on Canadian drinking preferences. While Generation Y has become the new shopper (Neilson 2009), they have the least discretionary income of all the generational cohorts and the younger portion is not legal to drink alcohol in all provinces of Canada. Stratus will be challenged to target the largest buying power in Canada.

The scope of the innovation expertise that New World wine producers have is value-chain wide in scope, and in-depth enough to completely re-order manufacturing, fermentation, distribution channel, pricing, marketing and customer service (Cholette, 2009). New World wine producers

Bonny Doon currently has an enviable position in the 1990’s Californian wine-producing industry. The company has successfully differentiated itself from its competition and achieved a first mover advantage in terms of selling “undervalued” wines. However, due to increased rivalry and a changing and increasingly challenging market,

The vast majority of US wine consumers consider themselves uneducated in wine matters and have trouble remembering which wines they liked. Researches in consumer behavior have shown that people appear to be confused during the wine selection process. Customers have expressed that they want to be able to easily identify the wines they will enjoy without having to solicit personal assistance in the store. Many inexperienced wine drinkers feel confused about all the wine choices, especially the intricacies of foreign appellations. Producers need to design and label wines that consumers can better understand .

Yellow Tail is the leading imported wine in the US. Introduced in June of 2001 by Australian owned Casella Wines, Yellow Tail sold more than 8.5 million cases in 2008, which is more wine than the next three Australian brands combined. This success has attracted substantial competition. The issue for Casella is how to sustain Yellow Tail’s growth in the face of emerging competition on a limited ad budget.

This report provides an overview of the Australian Wine Industry using Porter’s Five Forces industry analysis framework and seeks to provide recommendations based on the impact of the forces for a start up boutique producer.

Moving on to global consumers, The CEO of Luxury Institute stated that, “Consumers are purchasing wine at higher volumes because they enjoy the restaurant and at-home dining experiences that include a great quality wine.” (Luxury Daily, 2016).  An implication of this quality preference is that restaurants have seen a decrease in sales of wine priced at $8 a bottle or lower while higher-priced wine is more popular. (Cheers Online, 2016).  Now, the average cost of wine in

The big goal and major objective of this plan is to enable The Hunter Valley Wine Company increase production of good quality wine to meet the increased demand for wine in China, Singapore, Japan, South Korea and other Australian and International major wine distributors which occupy a significant niche in the Asian wine markets. Hunter Valley Wine Company is facing tough competition from other Australian wine distributors who are beginning to exert pressure to either increase production of high quality wines or be faced out of the market. Australia has been accredited with production of high quality wines and the demand for the product is overwhelming in Asian markets. Other objectives set to be achieved by

The following analysis will use Porter's 5 Forces Model to identify the market power. The grape growers are the suppliers, the winemakers are the sellers and the consumer is the buyer. This discussion could also include the suppliers of raw materials for bottling the wine, the shipping companies used to carry the wine to the point of sale and also the supermarket, liquor store and restaurant owners where wine is often purchased by the consumer.

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 upon completing the reconfiguring future strategy. The big decision is whether to get back to original vision, and focus on the domestic market, which bring a 90% of revenues or continue diversification and keep on pursuing the vision of

In the most recent years, domestic sales of wine has declined constantly. The wine consumption is becoming more occasional. This is partially due to an aggressive anti-alcohol campaign and driving restrictions set by the local government, but also facilitated by a lack of marketing strategy: the wine market is loosing touch with the youth (the average age of wine drinker is gone up from 35 to 55) and young people are getting more keen to beer or alcohol pops.

This case describes the global development of wine industry, and how new world wine players occupied the global market share from old world wine producer gradually. It is very interesting that author selected the Britain as the sample stage for the battle between the new world wine campaign and the traditional campaign.

7 What role have the wine buyers (end users and others in the supply chain) played in contributing to the fall in demand for cork as a closure?