The vehicles Mondavi used to accomplish their success were primarily internally based development with their joint venture usage to create their organic growth model. Both a vehicle and differentiator, Mondavi was the first California winery to logistically set up and accomplish a successful international joint-venture with a French winemaker in 1979 to produce an ultra-premium wine in America. This split joint venture with Baron Phillipe de Rothschild birthed Opus One which became one of their most successful brands and by 1998 was sold in over 65 countries worldwide. The differentiators continue all the way back to the 1960’s and early 1970’s when Mondavi introduced countless revolutionary wine making techniques to the California wine industry.
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Mondavi tangibly owns 9700 acres of vineyards in California and another 1,600 acres between Chile, Italy, and California for internal sourcing for their higher quality wines. Mondavi also has a highly innovative gravity flow system installed that removed the need for any pumps along with the capacity for 1,300 barrels of wine within one single winery they own. In 2001 alone they brought in over $48 million in net income along with their stock closing at $40.54 per share (see Case Exhibit 1). Intangibly Mondavi has a high connection of worldwide distributors to network through, other wineries combine with for joint-ventures, high level automotive technology, and a 40 year strong respected brand name. The next Resource Based View assumptions to check are if the resources are heterogeneous and immobile. Heterogeneous wise Mondavi’s innovative mindset, brand reputation, and joint-venture network are not easily imitated and give rise to many of Mondavi’s core competitive advantages. Secondly, Mondavi’s resources are not mobile and their brand equity, research, image, and name are immobile and thus satisfy the second requirement of RBV. Finally in assessing if Mondavi’s resources give is a sustained competitive advantage the VRIO framework must be examined for the brand and other primary resources. Mondavi branding is a valuable resource so it is not a competitive disadvantage and is also categorized as rare so it is not a competitive parity. Furthermore, the Mondavi brand would be costly to imitate so it is not labeled a temporary competitive advantage, and the firm is organized to capture value thus proving it to be a sustained competitive advantage in the perspective of
Mondavi tangibly owns 9700 acres of vineyards in California and another 1,600 acres between Chile, Italy, and California for internal sourcing for their higher quality wines. Mondavi also has a highly innovative gravity flow system installed that removed the need for any pumps along with the capacity for 1,300 barrels of wine within one single winery they own. In 2001 alone they brought in over $48 million in net income along with their stock closing at $40.54 per share (see Case Exhibit 1). Intangibly Mondavi has a high connection of worldwide distributors to network through, other wineries combine with for joint-ventures, high level automotive technology, and a 40 year strong respected brand name. The next Resource Based View assumptions to check are if the resources are heterogeneous and immobile. Heterogeneous wise Mondavi’s innovative mindset, brand reputation, and joint-venture network are not easily imitated and give rise to many of Mondavi’s core competitive advantages. Secondly, Mondavi’s resources are not mobile and their brand equity, research, image, and name are immobile and thus satisfy the second requirement of RBV. Finally in assessing if Mondavi’s resources give is a sustained competitive advantage the VRIO framework must be examined for the brand and other primary resources. Mondavi branding is a valuable resource so it is not a competitive disadvantage and is also categorized as rare so it is not a competitive parity. Furthermore, the Mondavi brand would be costly to imitate so it is not labeled a temporary competitive advantage, and the firm is organized to capture value thus proving it to be a sustained competitive advantage in the perspective of