Clayton Industries

MBA 625 Mid Term Case Analysis

18th July 2013

Shruti Sankar ID # 1696491

Problem Statement

Robert Mondavi Winery has been successful in establishing its position as world leader in the making of fine wines. Through a series of high end innovations and various promotion initiatives, Robert Mondavi established a strong brand image, which has been carried forward over an impressive span of 35 years. The company has shown remarkable progress in terms of growth rate and financial success. However, a series of recent developments in the industry and unfavourable economic conditions pose a considerable threat to the long term profitability of the company. The firm is facing intense competition from Australian imports. Furthermore, a number of firms are entering the premium wine business to capitalise on changing consumer preferences and increasing demand for high quality wines. In the wake of the current challenges and deterioratingwine sales of the firm, CEO Greg Evans and Chairman Michael Mondavi have to make some key decisions. Given the current trend among competitors to pursue growth through mass acquisitions, can the firm remain competitive by choosing not to do so? What are the strategic directions the company can pursue in order to retain and strengthen its competitive position? Should they consider global expansion as opposed to merely joint ventures? How can they prevent further decline in sales volume and drive up sales again? In order to address these concerns, it is important to understand the companys key resources and

depth study of the external factors will bring us to a set of strategic alternatives which the firm can adopt. The final recommendation will be based on few key decision criteria.

Clayton Industries

capabilities and its sources of competitive advantage. The internal analysis followed by an in-

Internal Analysis - Resources

Clayton Industries