Andreas AntoniLailan Natasha PutriMuhammad MaulanaIdzmil Mohamed HashimPrio DarsonoGracia Sekar Kinanti PutriXavier Damien Hubert Henry

Frogs Leap WineryFrogs Leap winery is established in 1981 in Napa Valley, California.

Frogs Leap is classified as a mid-sized winery, producing between 50,000 499,999 cases.

Employs EMS (Environmental Management Systems) and SWP (Sustainable Winegrowing Practices).

Certified Napa Green Land, Napa Green Winery and Sustainable Practices.

Frogs Leap Winery Case SynopsisThe United States surpassed both France and Italy in 2008 as the worlds largest consumer of wine by dollar value.

Consumers are increasingly aware of healthy living and green concept.

Demand is growing from the LOHAS demographic.

Frogs Leap Winery Case SynopsisDue to hyper-competition, almost all of the wineries in USA face downward pressure to cut costs and margins.

Some wineries, including Frogs Leap, have increased investment in EMS and SWP (Sustainable Winegrowing Program), although benefits remain unclear.

Frogs Leaps balance sheet is suffering from debts.

Problem IdentificationHas Frogs Leap Winery obtained Sustainable Competitive Advantage (SCA)?

2) How can Frogs Leap Winery remain sustainable for the next 10-20 years?

Related TheoriesExternal Environment Analysis (PESTEL, Porters Five Forces).

Internal Environment Analysis (Internal Strengths and Weaknesses analysis, VRCN analysis, financial analysis).

Competitive strategies.

Sustainable Competitive Advantage.

PESTEL Analysis

USA has stable policy regarding winemaking.

Hyper-competition from industry, though demand is growing.Customer getting cautious in spending money

Consumers becoming more health and environmentally conscious.

Evolution of computerized systems (e.g.CRM).Internet & social media growth.

Environmental Management Systems (EMS).Earthquakes and global warming are major problems.

Several States have supported direct-to-consumer sales.Getting green certification is costly.

Porters Five Forces Analysis

VRCN/VRIN Test

Core CompetenceVRCNCompetitive ConsequenceOrganic and Biodynamic Production System Using EMS and Green Energy, Creating High Quality ProductsYesYesYesYesSustainable Competitive AdvantageEstablished, fun brand with a green imageYesYesYesYesSustainable Competitive AdvantageDirect-to-Consumer Distribution Channels via Tasting Rooms and Wine ClubsYesNoNoNoCompetitive ParityEngaged, Motivated WorkforceYesNoNoNoCompetitive Parity

SWOT Analysis

Established, strong brand name among aficionados.One of the best EMS in Napa Valley regionMotivated employees.High customer loyalty.Wide product range.

Large debt load.Not given enough attention by wine advocates.Underutilized land.Unclear succession plan

The emerging LOHAS demographicGrowing demand from international market. Growth of social media and online marketplace.New product development

Hyper-competitive trading environment.Mounting environmental concerns.Variety of substitute products.

Financial Analysis

Identification of Frogs Leap Winerys Competitive Strategy

Frogs Leaps main competitive strategy is a best-cost provider strategy.

Frogs Leap successfully obtain a foothold using best-cost provider strategy by:Adhering to strict quality, green manufacturing using EMS.

Creating an excellent, fun, green brand.

Being close to customers.

Wide range of low cost products compared to alternatives brands.

Case Solutions (Recommendations for Frogs Leap)

Overall strategy for the next 10-20 years:Expand the business by premiumisation and taking advantage of globalization trends while maintaining the companys attributed values of environment sustainability and keeping an eye on debts.

PeriodAction Plans2015-2020Solve internal issues such as land utilization maximization and production maximization, succession planning, getting publicity.Gain the market share on the growing LOHAS demographic.Conduct marketing research on current and potential international markets.Develop and innovate on other products such as sparkling wine.Create hype on potential markets via social media.Create more direct-to-consumer sales channels2021-2030Penetrate international markets via distributors and resellers.Develop green winemaking consultancy business unit.Develop a fertilizer sales business unit.Purchase ailing wine vineyards and utilize their assets to push production of both wines and fertilizers.2031-2035Expand sales of fertilizers to other industries.Strengthen position in international markets. If possible, create direct-to-consumer channels in international market.

ConclusionHas Frogs Leap Winery obtained Sustainable Competitive Advantage (SCA)? Yes, from its green, biodynamic production system which creates superior products

2) How can Frogs Leap Winery remain sustainable for the next 10-20 years?Keep innovating to remain sustainable for the next 10-20 years.

Lessons LearnedSustainability is one of the main issues in the wine industry.

Sustainable competitive advantage is created from proper utilization of the available resources, not from stand-alone resources.

An established brand still needs publicity to reach potential market segments.

Lessons LearnedThe Internet and social media are becoming more important in getting publicity.

Globalization is inevitable and companies need to take advantage of it.

Innovation is the key to sustainability.

Q&A Session

Thank You