Strategic Analysis Of Robert Mondavi Inc.
...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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