Robert Mondavi Corporation

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Recommended: Analyse globalization with relevance to the wine industry

1. EXECUTIVE SUMMARY……………………………………………..5

2. BACKGROUND OF THE CASE STUDY…………………………….6

3. ANALYSIS & IMPLICATIONS OF PORTER’S FIVE

COMPETITIVE PRESSURES……………………………………..7-17

3.1. The Potential Entry of New Competitors

3.2. Competitive Pressures from Substitutes Products

3.3. Bargaining Power of Buyers

3.4. Bargaining Power of Suppliers

3.5. The Rivalry among Competing Sellers

4. ANALYSIS OF THE STRATEGIC GROUP MAPPING……….18-20

5. KEY SUCCESS FACTORS OF THE WINE INDUSTRY………21-23

5.1. World famous growing areas

5.2. Larger growing market for premium wines

5.3. Favorable demographic and macro trends

5.4. Quality and affordable prices

5.5. Product differentiation

5.6. Different wine segments

5.7. “Open markets”

6. RECOMMENDATIONS…………………………….…………….24-27

6.1. Positive cash flows

6.2. Backward integration

6.3. Expanding to new geographic areas

6.4. Exploring new channels

6.5. Openings to extend quality and image to niche market

6.6. Further mix channels of export strategies

6.7. Clever advertising

7. CONCLUSION………………………………………………………...28

8. LIST OF REFERENCES…………………………………………..…28

1. EXECUTIVE SUMMARY

This report provides thorough analysis of the Robert Mondavi Corporation (RMC) in order to give a best solution to Michael Mondavi, the CEO of the company in terms of the problem face by the company.

It begins by examining the internal and external forces that greatly affect RMC by applying Porter’s five forces of competitive pressures to investigate the status of competition of wine industry in U.S. as well as their implications.

Analysis of the strategic group mapping is important in order to give a clear position of RMC’s competitor in the market follows by each company’s characteristic.

Next, it is essential to analyze the key success factors of U.S. wine industry that contribute RMC in considering its future competitive strategies and changes that should be taken by the company accordingly

Finally, recommendations are provided for RMC for its future expansion’s strategies.

2. BACKGROUND TO THE CASE STUDY

RMC is a leading producer and marketer of table wines, located in Oakville, California. RMC markets wines worldwide un...

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8. LIST OF REFERENCE

Allick, C. and Blankfort, T. 2002, ‘The Robert Mondavi Corporation’, Instream Partners LLC, viewed on 30th Nov 04, .

Burns, M., Crescenzi, D., Ghaleb, T., Gichuru, I., and Parija, B. 2001, ‘Beringer’, viewed on 10th Dec 2004, .

Eyler, R.C. 1999, ‘The International Competitiveness of the California Wine Industry’, North Bay Regional Collection, viewed on 30th Nov 04, .

Franson, p. 2002, ‘Wine industry drinks from bitter cup at industry conference’, Napa News Dot.Com, viewed on 1st Dec 04, < http://www.napanews.com/templates/index.cfm?template=story_full&id=549CD609-5516-4E4C-A11C-1941F07D7944>.

Silverman, M. and Castaldi, R. 1999, ‘Competition in the Global Wine Industry: A U.S. Perspective, viewed on 29th Nov 04, .

Silverman, M., Gilinsky, Jr., A., Guy, M. and Baack, S. 2001, ‘Robert Mondavi Corporation’, viewed on 10th Dec 2004, .

Spritzer, A.A. 2002, ‘The Wine Pact: ‘New World’ Wine Change the Industry’, viewed on 1st Dec 04, < http://www.american.edu/TED/wine-pact.htm>.

Thompson Jr, A.A. and Strickland III, A.J. 2003, Strategic Management: Concepts and Cases, 13th edn., McGraw-Hill Higher Education, NY.

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