Robert Mondavi and the wine industry1. The industrial structure in the Old World is significantly different from that in the New World. First of all, the Old Continent has a very low concentration rate, while the diversity of competitors is high. Along with other factors, rivalry in the Old World sector is very high. In contrast, rivalry in the industry is relatively low due to the extremely high concentration ratio and low diversity of competitors. The New World consists of large, public companies versus the small, privately owned Old World vineyards that historically produced for their own consumption. Another difference is between suppliers in both industries. Suppliers in the Old World are one with producers because most wine producers are able to purchase their own land for grape production due to the low cost of land and low labor cost. New World producers must spend large sums to purchase land and rent expensive harvesters, or they have outsourced their grapes from other farms. Most producers in the New World tend to rely on outsourcing their grapes, giving their suppliers a lot of power due to the need for grapes for the final product. The threat of entry in the Old World is relatively high compared to the extremely high capital requirements in the New World making the threat of entry low. Finally, the main difference between the New World and Old World industries is the distribution system imposed by wine producers. The Old World has few restrictions and tends to distribute its products to off-site retailers throughout Europe and even abroad. By comparison, many manufacturers in the New World must first distribute to wholesalers who are also… middle of the paper… with a larger market share. The company is very complex and is structured appropriately. I believe that if they continue to expand into different lines or brands, the company will experience cannibalization and will soon experience failures in lines that do not receive adequate attention. Personally I would encourage the promotion of the main Robert Mondavi Wine brand in order to not only gain market share but also to increase the strength of the brand value so that other products on the market that use the leverage of the same name can reap the benefits as well. of this main brand. I also think that Mondavi should promote Italian and international wines separately because as consumers become more educated they will want to expand beyond domestic wines and will want to try and experience more cultural wines.
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