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Crafting winning strategies in a mature market: The US wine industry in 2001

Author: Kim, W. Chan ; Mauborgne, Renée ; Hunter, JasonINSEAD Area: StrategyPublisher: Fontainebleau : INSEAD Blue Ocean Strategy Institute 2009.Language: EnglishDescription: 8 p.Type of document: INSEAD CaseNote: Latest version available via https://publishing.insead.eduAbstract: "Crafting Winning Strategies in a Mature Market: The US Wine Industry in 2001" examines the competitive environment of the US wine industry in 2001, prior to [yellow tail]’s launch, as well as the strategic move executed by [yellow tail] that made it the number one imported wine and the fastest growing brand in the history of the US and Australian wine industries.Pedagogical Objectives: The case demonstrates how the US wine industry was overcrowded, highly competitive, and increasingly squeezed at the distribution and retail stages of the supply chain. Notwithstanding, wine manufacturers systematically competed along the same set of factors that had hardly changed over the last few centuries. In July 2001, Australia’s Casella Winery introduced [yellow tail] into this highly competitive US market. Small and unknown, they had expected to sell 25,000 cases in their first year. In fact, they sold nine times that amount. By the end of 2005, [yellow tail]’s cumulative sales were tracking at 25 million cases. [yellow tail] soon emerged as the overall best selling 750ml red wine, outstripping Californian, French and Italian brands. This case examines the strategic move executed by [yellow tail] that made it the number one imported wine and the fastest growing brand in the history of the US and Australian wine industries. The case is accompanied by a two-part video, “Creating a Blue Ocean in the US Wine Industry”, that is free for instructor download at www.blueoceanstrategy.com. Part A provides a visual overview of the wine industry setting prior to [yellow tail]. It is a powerful complement to the paper case. Part B explores, through interviews with the principal players behind the launch of [yellow tail], the development and execution of Casella’s blue ocean strategic move. The case and the DVD come with a comprehensive teaching note, and are excellent for both MBA and executive audiences.
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Latest version available via <a href=https://publishing.insead.edu>https://publishing.insead.edu</a>

The case demonstrates how the US wine industry was overcrowded, highly competitive, and increasingly squeezed at the distribution and retail stages of the supply chain. Notwithstanding, wine manufacturers systematically competed along the same set of factors that had hardly changed over the last few centuries. In July 2001, Australia’s Casella Winery introduced [yellow tail] into this highly competitive US market. Small and unknown, they had expected to sell 25,000 cases in their first year. In fact, they sold nine times that amount. By the end of 2005, [yellow tail]’s cumulative sales were tracking at 25 million cases. [yellow tail] soon emerged as the overall best selling 750ml red wine, outstripping Californian, French and Italian brands. This case examines
the strategic move executed by [yellow tail] that made it the number one imported wine and the fastest growing brand in the history of the US and Australian wine industries. The case is accompanied by a two-part video, “Creating a Blue Ocean in the US Wine Industry”, that is free for instructor download at www.blueoceanstrategy.com. Part A provides a visual overview of the wine industry setting prior to [yellow tail]. It is a powerful complement to the paper case. Part B explores, through interviews with the principal players behind the launch of [yellow tail], the development and execution of Casella’s blue ocean strategic move. The case and the DVD come with a comprehensive teaching note, and are excellent for both MBA and executive audiences.

"Crafting Winning Strategies in a Mature Market: The US Wine Industry in 2001" examines the competitive environment of the US wine industry in 2001, prior to [yellow tail]’s launch, as well as the strategic move executed by [yellow tail] that made it the number one imported wine and the fastest growing brand in the history of the US and Australian wine industries.

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