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which helps to minimize the entry to the new market. Not only was this sufficient but the operating cost in the wine industry was too high as well making it hard to enter into, which gives Mondavis an advantage.However, the expansion of the alcoholic companies make produces to compete among each other, diverging into the premium wine business keeping up with the pace of changing consumer tastes. For example, firm teamed up recently with Wal-Mart to begin selling Alcott
Ridge, a line of private-label wines to be sold in Wal-Mart and Sam’s Club stores at $6–$7 per bottle making it more accessible and cheaper to customers.Future strategyWith these concerns in mind, Mondavi and Evans have to strengthen the firm’s competitive position to survive in the long term. First of all, the competition is there for a reason and Mondavi needs to differentiate themselves from the group of competitors. The can start by selecting a group of segments and cater to their needs. By doing an analysis and/or survey to determine which segment they will benefit from and how to grab their attention through advertisement, discounts, wine tasting, or even having a package deal through hotels, etc. with this strategy the company can provide the main feature to their product line.
ReferenceRoberto, M. (2005). Robert Mondavi and the wine industry. Harvard Business Publishing. 9-302-102. Retrieved from -ENG