Robert Mondavi Case

Topics: Wine, Luxury good, Luxury vehicle Pages: 3 (856 words) Published: December 10, 2012
Robert Mondavi Case Study
Case Background
Robert Mondavi is one of the pioneers of the wine industry and can also be credited to bringing the wine industry to the Americas from Europe. Robert Mondavi began wine making in the relavitely then new region in California back in 1943 and has since become the most innovative and leading winemakers in America. Initially to stimulate and create a market for wine drinkers in America, Robert Mondavi embarked on a journey to educate and enlighten the American people about the culture of enjoying wine and food, this soon also became integrated into the mission and the vision of the organization. Later on in the 70’s Robert Mondavi entered into the popular premium wine segment and also bought a local co-operative winery to handle production, in addition to partnering with a French winery to manufacture a premium wine for the first time in America, the company remained stable and in its initial state till the 90’s. In 1993 finally Robert Mondavi offered a public offering to boost investments and generate capital for land acquisitions and wine replanting due to a virus which has eliminated almost 90% of the crop. Throughout the 90’s Robert Mondavi had controlled expansion with some big projects like the mapping technology developed with NASA and also foreign partnerships with wineries in Chile and Australia. Problem Statement

Michael Mondavi and Greg Evans have realised that since their markets are heavily dependent on the US markets, they face a legitimate threat from the large diversified alcoholic companies who are aggressively consolidating and entering into the premium wine business. Thus they should work on a strategy to strengthen the firm’s competitive position in order to survive the huge consolidations and aggressive competitions. Alternative Analysis

The Robert Mondavi organization should follow suit and begin consolidations themselves. If they buy out the rivals there will be minimum competition and they will...
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