Mondavi’s Strategy, Success, Threats, and Risks Essay -- Business Mana

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 ...