Climate Change and the Napa Valley Wine Industry Harvard Case Solution & Analysis

Climate Change and the Napa Valley Wine Industry Case Study Solution

Diversification in Product Line:

The company started to diversify its product line by producing small quantities of the products like Pinot noir, merlot and chardonnay which provides a competitive edge to the company by attracting more customer base through its diversified product line.

Transformation in the leadership and infrastructure:

Company started to transform its organizational infrastructure by the vision of new CEO and president hired in the year 2014 named Mr Steve Tamburelli by making the organization a winery which is 100% estate winery and this providedthe organization with an edge to procure the required grapes from its own vineyards and this wasnot treated as illegal and this resulted in the reduced yearly production volume up to 40000 cases.

Strategic Objectives:

The companyrevised the focus of its strategy to achieve its set objectives and vision by working to strengthen the internal control over the usage of its production capacity of grapes by producing the best grapes and maintaining the high brand positioning through providing the highest quality of its product and ingredients.

This resulted in the higher or premium price of the wine products and thecompany was trying to focus more on earning more revenues by price skimming and charging more price and concentrating less on selling more volume because the brand positioning of the product was created as ahigh-quality product. Hence, charging higher prices for its product was quite justifiable.

Key Issues:

The key issues faced by the company consist of achange in the climatic conditions and fluctuations in the temperature over the different regions result in variation and volatility in sales of the wine products and its production is affected due to the lack of availability of grapes in the market. Another issue was the scarcity of availability of water and increasing threats of the pests for the plant of grapes which is affected due to the viruses and germs. The ineffective management of the production capacity leads to the lower returns and profitability of the company.

Analytical Tools:

The company is dealing in the wine industry in Napa Valley which needs to be evaluated through qualitative techniques and tools which consists of the evaluation of industry analysis, competitive analysis, company’s internal and external position and the external environmental analysis by looking at the PESTLE analysis. Moreover, the competitive advantage position is also developed through the analysis of strategic capabilities and the extent of competitive advantage over the others by performing the industry analysis.


The company is evaluated through the internal and external analysis of the company’s operational profitability by the identification of strengths and weaknesses by internal evaluation and external evaluation through identification of opportunities and threats. This will help the company in devising its strategies according to the available opportunities and strengths to minimize its threats and weaknesses.


The strengths of Clos Du Val consists of the strong brand positioning of the company’s products, which is maintained by the company over time by providing the superior quality of the product. This creates a strong brand image and strong brand recognition of the company’s products and the company has maintained its position as a high-class brand through better taste and use of high ingredients and high-quality grapes. This resulted in the higher yield and return for the company by harvesting the plants of grapes on time, which also reduces the operational cost of the company.


The company is having internal issues which result in the weaknesses for the company in achieving its set objectives on time. This needs the critical evaluation of problems by looking at the reduced yield for the company. This results in unacceptability of the wine products if the company fails to provide the expected quality of the grapes.

The company is unable to maintain the effectiveness of its operations, which leads to the loss of demand for the company due to the poor management of the company. Moreover, the company is also facing issues with respect to the formation of its strategies according to the changing needs of the customers in terms of flavours.


The external position of the company shows that ithas the opportunities to enjoy the competitive edge over others by focusing more on high-quality products and charging the price skimming through the development of customer loyalty and very strong brand positioning in the minds of the customers.

Climate Change and the Napa Valley Wine Industry Harvard Case Solution & Analysis


The company is providing a better product as compared to its competitors by creating differentiation in its product through the utilization of better ingredients. The company has an opportunity to take advantage of the changing climatic conditions through the geographical expansion and producing grapes in those areas which are more favourable for quick ripe for its fruits. This can also result in more product diversification to get the more market share and strong customer base.......................

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