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Robert Mondavi And The Wine Industry

1249 words - 5 pages

The Robert Mondavi Winery was founded in 1966 in Oakville, California. Robert Mondavi started the business after he separated from his brother, with whom he had run a winery until then. Only three years later, the Los Angeles Times named Mondavi's Cabernet Sauvignon 1969 as the best wine produced in California.The Mondavi Winery focuses on three main strategies:* produce wine traditionally* be innovative* educate US costumers concerning wine cultureTRADITIONConcerning wine making Robert Mondavi is "old fashioned", he refuses to adapt modern practices to "design" wines, like adding artificial flavours. He prefers to produce wine the traditional way like most of the European wineries. That means for example no additional ingredients and using expensive oak barrels for aging premium wine.INNOVATIONOn the other hand the Mondavi Winery introduced many new technologies to the Californian wine industry. For instance beginning in 1993 the company cooperated with NASA on a project to apply remote-sensing and digital-mapping technologies via satellite to enhance vineyard management.WINE CULTURE"People who enjoy food, art, music also enjoy fine wines, and they enjoy them more together....Wine is more than a drink. It's a culture."This statement from Robert Mondavi shows clearly the importance of the wine culture for him. To share and spread this passion for good wines the Mondavi winery organizes concerts, art shows and other cultural events. These events are combined with winery tours and tasting of new wines. As soon as 1976, Robert Mondavi established the Great Chefs program, the first winery culinary program in the United States.THE GLOBAL WINE INDUSTRYToday global wine world can be divided into two halfs: the Old World, consisting of European wineries and the ones like Mondavi and the New World, which includes most of the Australian, South African and South American wineries.These new competitors pose a major threat for the traditional wine-makers. For example the Australian imports to the U.S. have grown around 30% per year since 1995. With extraordinary large vineyards, more machinery and new technologies they can offer quality wine for relatively low prices.In the following pages we will conduct a branch analysis for the wine sector and a SWOT Analysis for the Robert Mondavi Winery in order to point out the specific opportunities and future strategies for the Mondavi winery.BRANCH ANALYSIS:From 1988 to 2002 the Australian wineries raised their world market share from 2% to a respectful 22%. How did they do that, what strategies had and still have they and which weaknesses of the traditional wineries did they identify?The following fields inhabit problems for the old world and offer chances for the new world:1. Identification of originThe traditional identification of origin as a quality mark in Europe, like Chianti, Burgundy, Champagne,.., brings up problems: because of the limited area, the wineries are very weather and season dependent and also...

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