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Case Study Frog's Leap Winery

1458 Words6 Pages

Frog’s Leap Winery 2011 Sustainability Agenda Danielle Spears Florida State College at Jacksonville Author Note Danielle Spears, GEB 4891 Frog’s Leap Winery Correspondences concerning this essay should be addressed to Student_speadh@students.fscj.edu Abstract The purpose of this report is to analyze the business strategies Frog’s Leap Winery used in 2011 for each of its consumer business segments. In doing so, we will uncover how well their strategies are working and determine the factors that lead to the company’s success. In addition, we will look at the competition and discuss Frog’s Leap Winery’s strongest and weakest competitive forces. Finally suggesting ways to help the future growth of Frog’s Leap Winery. …show more content…

An abundance of wineries offers multiple outlets for consumers to purchase wine creating a competition price market. This multitude of wineries can have the opposite effect on the bargaining power from suppliers. Because there are so many wineries there are also many suppliers and their distribution is not involved with retailers. Due to the start-up cost of a winery the threat of a new winery entering the market is low. It takes a large amount of capital to purchase the land and equipment involved in the wine making process. Not to mention the time to harvest the grapes and then the process of making the wine after the grapes are harvested. Let’s say an organization was able to get accomplish all that without yet making a profit, the lack of brand recognition is another huge obstacle to overcome in order to turn a …show more content…

By using solar power and creating their own source of compost they were able to drastically reduce operating costs. Additionally, there investment in environmental managing systems helped the organization remain profitable during the recession (Gamble, Peteraf, & Thompson, Jr., 2015). Brand recognition through their organic and biodynamic growing techniques has also been a contributing factor to the success of Frog’s Leap Winery. Financial Performance Frog’s Leap Winery has shown consistent financial growth for the company year over year. Their strategy of being a “green” winery and working in environmentally friendly capacities has shown to be a financial benefit for the company. Not only did it help to gain the Lifestyle of Health and Sustainability (LOHAS) segment of customers, it also significantly reduced costs for the organization. Drastically reducing the operating costs by using geothermal and solar power energy they increased profits. Recommendation for

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