Bonny Doon Case

 Bonny Doon Case Composition

1 . Current Outlook/Position of Bonny Doon

Bonny Doon Vineyards, a prosperous winery business based in Santa Cruz, Cal, has grown from selling five, 000 instances of wine a year in 1981 to 200, 1000 cases 12 months in 1999. To keep growing and stay more rewarding, the business must choose among three conceivable strategic directions. The first strategy should be to start importing wines coming from Europe in to the United States. The second alternative is usually branching into a retail outlet to get unusual wines of great worth, accompanied by a higher level of service. Lastly, the business' D. E. Watts. N could be expanded to add wines not made by the company itself although by different wineries that follow the same principles and philosophy.


How big is the wine industry in the U. S., tested by allure, is approximated to be 2 . 5 million tons of crushed wine vineyard in 1998. About 50 % of the mesure crushed are red wine grapes and the other half are white colored wine grapes. The best wineries are located inside the Napa Area and Sonoma region, whose wines receive high praises from authorities. The every capita wine beverage consumption inside the U. S i9000. is only regarding 2 . 02 gallons per adult as compared with 16. 2 gallons in France and 15. 8 gallons in Italy. As a result, demand for wine drinks in the U. S. features huge possibility of continued progress. At the same time, there may be increasing demand for U. S i9000. -made wine beverages abroad.

Bargaining Power of Suppliers: High

Negotiating Power of Suppliers: High

My spouse and i. Porter's five Forces Unit Analysis

в—Џ reducing number of vineyards to secure grape supply as vineyards will be being bought out by simply land builders в—Џ trouble convincing grape plantations to produce superior quality grapes mainly because they would need to produce significantly less in amount, resulting in much less profits intended for the vineyard в—Џ lowering number of grape plantations to secure grape supply because vineyards will be being bought out by land builders в—Џ trouble convincing grape plantations to produce high quality grapes because they would have to produce less in amount, resulting in much less profits to get the vineyard

Threat of Substitutes: Low

Threat of Substitutes: Low

Barrier to Entry: Moderate

Barrier to Entry: Moderate

в—Џ substitutes of wine beverages ( non-alcoholic beverages just like soft drinks and coffee) likes different than wines в—Џ Per capita consumption of replace beverages in the U. S i9000. (soft beverage: 54 gallon, coffee: 30 gallon) has already been high compared to wine (2 gallon), and demand for wine beverages is still growing

в—Џ substitutes of wine ( nonalcoholic refreshments such as fizzy drinks and coffee) tastes different than wine в—Џ Per capita consumption of substitute beverages in the U. S. (soft drink: fifty four gallon, espresso: 30 gallon) is already large compared to wine beverage (2 gallon), and with regard to wine is still growing

в—Џ sizable capital expenditure required to obtain a winery в—Џ knowledge of viticulture and varietal blending required to successfully any winery organization в—Џ need to establish romance with suppliers and marketers

в—Џ large capital expenditure required to buy a winery в—Џ knowledge of viticulture and varietal blending needed to successfully run a winery organization в—Џ have to establish romance with suppliers and vendors

Industry Rivalry: High

Industry Rivalry: High

в—Џ competition from brought in European wine

в—Џ remarkably competitive wineries from areas such as the Napa Valley and Sonoma provide high quality wines under high grade brands в—Џ many rivals in the industry offering affordable wines at or perhaps below $10/bottle (e. g. Best Cellars, Wine Brats, Bonny Doon, etc . ) в—Џ competition from imported European wine drinks

в—Џ extremely competitive wineries from regions such as the Napa Valley and Sonoma present high quality wine beverages under high grade brands в—Џ many opponents in the industry offering affordable wine beverage at or below $10/bottle (e. g. Best Cellars, Wine Brats, Bonny Doon, etc . )

Bargaining Power of Buyers: It Depends

Bargaining Power of Clients: It Depends

в—Џ buyer of expensive wines have got medium negotiating power because they are...


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