Mondavi’s Strategy, Success, Threats, and Risks
Bargaining Power of Supplier:
Necessary products to make the wine e.g. grapes are easily available
that allows Mondavi to have a considerable amount of choice to choose
and keep their costs and expenses.
Threat of Substitutes:
There are a significant number of replacements for the Mondavi’s
product that includes beer, wine coolers, spirits, and various other
Threat of New Entrants:
The wine industry is undergoing consolidation. Even several beer and
spirits companies were moving toward the wine industry, which was
growing more and more.
Mondavi wine has many different competitors from small size to large
wine companies. There are lot different factors involves when
considering a market segment. The quality of the wine, design of
bottle, labeling can have a significant impact on consumer’s choice.
And on the top of that cost will also play important role.
Bargaining Power of Buyer:
Mondavi usually distribute their product through distributors and
wholesalers. There were few distributors who cover most of the
markets. As there were just handful distributors, they hold a
majority of bargaining power in the company.
Why has Mondavi been successful to date?
* Widely credited as America’s first premium commercial Winery.
* Established as one of America’s most innovative and highest
* First winery in the world to use refrigerated stainless steel
fermentation to retain the wine test.
* Mondavi sold one of its premium brand, Woodbridge over one million
* Mondavi was California’s second largest premium wine producer.
* Company fulfilled its goal of producing the highest quality wine