Mondavi’s Strategy, Success, Threats, and Risks

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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 drinks. 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 ...

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