Robert Mondavi and The Wine Industry REVISED.docx

Robert Mondavi and The Wine Industry REVISED.docx - Surname...

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Surname 1 Robert Mondavi and the Wine Industry: Three Strategy Tools Name Institution Professor Course Date Introduction Robert Mondavi founded the company in 1966. The case study states that he and his son Michael Mondavi are among the world’s innovative, best and finest winemakers. The success of Mondavi based is associated with the fact that their company used different strategies to attain financial success and a compound annual growth rate of approximately 28% since FY1994. Their firm’s market value is currently approximated to be around $600 million. Notably, the company has been changing its leadership strategies with an intent of having the best management towards goals attainment. On May 2001, Robert stepped down for Michael as the CEO who was later succeeded by Greg Evans in 2002. Australian imports have been considered to be among the competitors that affected the Mondavi. Mondavi was among the best worlds brand by the year 2002 despite some struggles caused by competitors. As a result of economic downturn, the Mondavi and other general wine sales forced global wine industries to consolidate. The industrial consolidation began to occur to new world producers facilitated by the premium wineries purchasing or partnerships with rivals. Despite the emergence of the consolidations,
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Surname 2 Mondavi remained to be a solely independent company whose primary market was in the United States. It is crucial to note that when the other companies were busy pursuing acquisition strategies, Mondavi remained focused on organic growth of its popular and surpassing brands. Mondavi’s success both in the past and during the time of the case study has substantially been determined by the company’s ability to address and combat their competitors using the five forces model, VRIO and value curve. This is a detailed case study analysis that aims at explaining the factors that made Mondavi so successful in the past and the reasons for its struggle during the time of the case study. The paper will consider the application of five forces model, VRIO, and Value Curve in response to reasons for success and factors that caused the struggle in specific exhibits for each case. Problem statement 1: Reasons for Mondavi’s success in the past Mondavi’s success in the past follows its competence and strategic organization that made it better at the face of the market’s competition. The organization used numerous strategies to make it dominant in the market. For instance, the company had launched the Kalon Project that cost the company around $28 million in Oakville. The fact that the company provided vital information on marketing and promotion of active campaigns gave it an excellent avenue towards success. The information collected during the campaigns was used for decision-making purposes by the management team to adhere to the needs of the clients. Secondly, Mondavi was successful because it chose to maintain the organic growth of its population premier brands. It is also paramount to point out that Mondavi was successful since it had numerous outlets of their
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  • Spring '16
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