4. What actions would you take to sustain and enhance Mondavi’s competitive position?
Looking at the wine industry, and analyzing the market wine, we can say that there are three main factors that can bring to success a wine industry: brand image, distributer relationship and access to capital and collaboration. Robert Mondavi winery success depends and will depend on the same factors listed above. In order to ensure a leading market position I think that Mondavi should focus on solutions that enhanced this main factors like enforcing brand image, enhancing relationship with distributors, emphasis on joint venture and collaboration. Let’s have a general overview over Mondavi’s strategies. Michael Mondavi understood that the success of its company depends strongly on the US market. But in a globalized world which has opened to other diversified market for any product, it opened the door also for alcoholic companies such as Diageo, Foster’s, Allied Domecq and others, who entered the premium wine business. The entrance of such companies in the market of premium wine make shiver the Mondavi’s winery and they felt threatened since its sales volume started to decrease. As a consequence of this analysis, Mondavi should work and focus on the strategy to reinforce the competitive position of the company in order to survive against the huge and aggressive competition there is establishing in US, and in order to confirm its consolidation on the US market. More specifically some challenges it could face can be: managing multiple brand in the global markets, maintaining domestic market share while foreign competitors enter US and accurately forecasting demand and acquiring necessary wine grapes. As already explained, the biggest threat for Mondavi is the big international companies entering the market of premium wine sector and because of their previous relationship and contacts with distributers and retailers, they have a really low barrier in such market. Although...
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