Bonny Doon Vineyard Harvard Case Solution & Analysis

Bonny Doon Vineyard


Bonny Doon Vineyard is the company of wine production that is established in 1938 by Randall Graham in Santa Cruz, California. The company mainly focus on the terroir wines and it is known as the quality of the wines and the idiosyncratic Labels, unconventional combination of grapes and amusingly named wines. The company had enjoyed massive growth in 1999s in the annual production of the company in over 200,000 cases where in 1981 the annual growth was selling around 5000 cases. Bonny Doon Vineyard has the strong market value and it was the first Californian vine producer to holds Rhone varieties and in 1983 the company entered into the spotlight when the founder of the company (Randall Graham) was seemed on the cover page of the wine Spector as the “Rhone Ranger”. (Amy J. Hillman, July 20, 2000)

The founder of the company was iconoclastic and one of the visionary wine maker in the California and he removed the pretensions from his wine often by irreverent and funny label and adopted various strategies regarding marketing and the quality of production due to which the company buildup a competitive markets to the other companies in The United Sates.

The company has the unique market and representation across market of the United States it is due to the uniqueness in the marketing and the production n of the wine as compared to other companies across the United States. The winery proficient significant commercial success with brands its collection in 2006 to relocate its efforts on terroir wines and biodynamic practice. The company had unique approaches and abilities in the wine production so that is why with in short period of time the company successfully attract a wide range of market place across the United States.

Problem of Statement

Although the Bonny Doon vineyard is a small and the founder-centered business which have facing various problems regarding the competitive imitations in its core accomplishments is at crossroad. Furthermore, the expansion opportunities for Bonny Doon include diverging into retail, expanding of the whole network of direct sales to embrace the non-Bonny Doon wines and intensifying its assistances of wines prepared to their stipulations in Europe while to considering these options the core competency of the company including the interests’ dynamics leaders and founder are critical. However the company faces critical complications in their business which may result in the disruption of the market value as compared to their rivals.

Situational Analysis

Strategic directions of Bonny Doon Vineyard

The Bonny Doon vineyard is California based winery business that has successful business and market place in United Sates. The sales growth of the company was around 5000 cases in 1981 while the company continue and increase their selling growth up to 200000 cases in 1999. (Dutton, G., 1997) Although the company setup a success graph of his growth and to maintain the growth in their business Bonny Doon vineyard need to choice the certain possible strategic direction among the three mention strategic directions which help the company to maintain the growth of the business. The three possible strategic directions include following.

  • Importation of wines from the European countries into the United States of America.
  • Bifurcating into the retail vents for infrequent wines of superior value accomplished by a high level of facilities and services.
  • The business’ D.E.W.N could be expanded to comprise wines not manufactured by the company itself but by other wineries that follow the same standards and viewpoint.

The growth in the business of the company can be increase by import wine from various European countries was a strategic way through the company may maintain its growth but according to the Graham it needed a lot of monitoring to make acceptable wine which is quite good for the business but it may create much complications in future while the second option is having s strength which aid to increase the growth of the business but for the distribution of the retail outlets the company needed a huge capital investment which is a risk for the company on the other hand the last option which indicates that the business can be grown by expanding D.E.W.N network which is suitable option for the company where this can expand the business without expanding the production of the company that would help the company to achieve the high targets as compared to its rivals across the united states.

 Current Market position of Bonny Doon Vineyard

The founder of the company “Graham’s philosophical approaches help the company to gain a valuable attraction in the market which is organic and help the company to achieve the best position in the market. Furthermore, the company gain a unique position in the market in the position of being an unorthodox winery business on the on the other hand the company’s wine production was grounded upon the strategies of “horrible duckling”. However the company refers to produce wines from the detested variety of grapes and producing a diverse combinations from it. To accomplish the unique production tactics, the company used creative and funny labels and slogans to name their wines and thus they successfully grab a specific and huge attention from the customers.

While currently the company is facing various complications and difficulty of the reduced number of considerable winegrowers thus making the firm highly dependent and at the same time susceptible to growers. As that Bonny Doon vineyard needed around 80 distributors and 15 winegrowers to sales wine around 15 countries and can fulfill the demand however the company founded itself a huge distribution network that could cause or create various troubles and complications for the company in upcoming years.....

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