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Mondavi's Winery Case Analysis

In: Business and Management

Submitted By homeworkdone12
Words 986
Pages 4
Winemaking and grape harvesting existed for thousands of years. It has always been a source of profit with undeniably high demand. The case study by Michael Roberto examines the history of wine and winemaking, and describes the very process of growing the grapes, maintaining the vineyard, fermenting and aging the wine, bottling, packaging, marketing and distribution. The author of the case study thoroughly describes the basics of winemaking, traces the history of wine to the modern day, analyzes the current wine market and competition, presents relevant data, and analyzes the implications of wine market upon Robert Mondavi and his company.
The advantages of investing into the winemaking business are quite obvious. Wine industry never slowed down exhibiting constant growth of 1-2% over the years. According to Roberto, there are over 1 million wine producers worldwide with various representation in different parts of the world that share yearly profits of $130 to $180 billion in retail sales (p.1). Robert Mondavi’s winery, described in the case, proved to be a profitable business that showed a substantial growth rate of 28% since fiscal year 1994 and market value of $600 million (p.1). Wine industry is a very profitable business that is an excellent target for investment. I would invest into a reputable and growing winemaking company with no reservations. Robert Mondavi has a significant advantage over the smaller independent wineries due to the name recognition after the efforts to advertise the company and its products. Robert Monbdavi’s business has established a loytal customer base and is taking efforts to further expand the number of people who are familiar with the name. Most of the success comes from the advertising and promotion efforts that are aimed to educate people about fine wine. According to Roberto, Mondavi’s company invested $11 million in the

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