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The company, which deals with wine production, was established by Robert Mondavi in 1966. He held the role of chairman until his retire in 2001. The company has enjoyed market share in the wine industry as one of the global inventive producers and makers of smooth wine. The company has been categorized as a modern wine producer, and this has enabled it make millions from sales and stability in the market. This report evaluates the changing structure and situational analysis of the company based on the threats and growth strategy.
Situational analysis of Robert Mondavi Company
Production of modern wine is mainly involved with large, extensive vine yards and manufacture of various labels of premium wines. For instance, Robert Mondavi wine company was established in Napa valley on a hundred acre farm. This gave the company an added advantage to compete for the market in the wine industry since the old wine producers had small vineyards. To add on, another advantage of Robert Mondavi Company over small companies is based on technology.
The establishment of a wine company on a large farm enables the management to invest in technology. For this reason, it is expensive for a small company to invest in technology when compared to large company. The company benefited from this investment since it significantly helped in production of quality products and enabled the reduction in costs of production. Use of machines in harvesting of grapes enhanced the company’s wine production hence consistency and stable market share. The company also has an advantage over small-scale companies because of its ability to produce wine in large quantity hence availability of stock for distribution in the ready market. This was easily achieved since the company maintained its quality in production. Small companies of old wine could not achieve production in large quantity while maintaining high quality products.
Over time, the structure of Robert Mondavi has been changing according to competition in the market. The success of the company in the industry relies entirely on the marketing approach. Robert Mondavi marketed its products by describing the product to opinion leaders enlightening them on the benefits for them to appreciate the product. This approach helped for the growth of the company since it offered a chance for promotion in consumer places such as restaurants where customers were offered the drinks for tasting, and also availed it to social events. The customer foundation was also strengthened by advertisements on both radio and televisions.
Competition from large companies
Success in the wine industry has attracted large companies such as Foster’s, Diageo and Allied Domecq companies to enter the market. Most of these companies are alcoholic beverages producers with many branches around the world. The entrance of large companies in the premium wines industry was a major threat to Robert Mondavi’s control in the market share. However, the companies employed strategies of acquiring the limited companies in the industry. These involved large expenditures to acquire most of the brands in the market. Conversely, Robert Mondavi concentrated on enhancing the quality of their existing brands. This provided the base of the company’s success since other companies had to market the acquired brands differently as their own hence consuming time. The position of Robert Mondavi enabled its growth and success in the wine industry as compared to the other companies.
The main strategy used by Robert Mondavi to expand in the international market was implementation of the industry consolidation approach. The company also got involved in international joint ventures abroad. This enabled the company’s growth since their partner had adequate research information in their countries. The products were also marketed partly in the of the original brand. Production of quality drinks in the new market was substantial for the expansion internationally.
The success of Robert Mondavi in the wine industry relies mostly on the quality and availability of the product. Production of brands in large quantity enabled the company to stay well above other companies in the market. The marketing strategies employed are also essential in the growth of the company. This enabled the Robert Mondavi to succeed as one of the largest companies in premium wine production.
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