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Essay / Research Paper Abstract
A 9 page paper discussing the structure of the global wine industry, how it was changing in 2001 and Mondavi's place within it. Based on the Harvard Case 9-302-102, the paper makes recommendations for how Mondavi can take advantage of the changes in the industry while adhering to its commitment to organic growth. Bibliography lists 3 sources.
Page Count:
9 pages (~225 words per page)
File: CC6_KSmktgMonda.rtf
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Unformatted sample text from the term paper:
Change is occurring in the global wine industry and within the domestic market as well. Internationally, "Sales of commercial premium bottled wine (which retail for $5 to $8) are
growing at dramatic rates compared with super premium wines (those costing more than $8), while sales of previously popular jug wines (less than $5) have plummeted" (Anderson, 2003; p. 47).
This constitutes favorable change for producers of premium wines such as Robert Mondavi, but only if these producers make the most effective use of the changes currently underway.
The purpose here is to assess Robert Mondavis current position in its industry and to make recommendations for achieving organic (i.e., non-acquisition) growth. 1. Evaluate the structure of the global wine
industry. How and why is that structure changing? The term "highly fragmented" applies to the global wine industry as to no other.
In 2001, there were more than one million producers throughout the world, not one of which accounted for more than one percent of global retail sales. Though only
about 25 percent of the worlds wine was produced in the "New World," the structure there was very different than in Europe where most wine was produced on family-owned, government-subsidized
farms. New World production, particularly that in the United States, occurred on much larger properties and used a much higher degree of mechanization.
Consolidation had begun in the 1990s, primarily among New World producers. Some direct competitors in premium wines merged; jug wine producers sought to acquire premium labels to add
to their product offerings. Finally, spirits producers sought to acquire wine operations to shore up flagging sales of spirits and "hard" liquors. 2. What threats do these changes present for
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