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Mondavi’s Strategy, Success, Threats, And Risks

492 words - 2 pages

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.

Current Competitors:

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
quality vintners.

* 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
case annually.

* Mondavi was California’s second largest premium wine producer.

* Company fulfilled its goal of producing the highest quality wine

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