Sandlands Vineyards: Competitive Advantage Case Study Analysis

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Added on  2022/11/14

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This document provides a comprehensive case study analysis of Sandlands Vineyards, a small winery focused on producing premium "old-vine" wines. The analysis examines Sandlands' competitive advantages, strategic decisions, and market positioning within the wine industry. It applies Porter's Five Forces model to evaluate the competitive landscape, including competitor rivalry, supplier power, threat of substitution, and threat of new entry. The analysis also explores how Sandlands utilizes the Blue Ocean Strategy to create uncontested market space and gain a competitive edge. The document discusses Sandlands' focus on quality wine production, unique vineyard practices, and marketing strategies. The recommendation suggests the use of new technology and maintaining focus on customer needs to ensure continued success.
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Sandland competitive advantage in the premium wine market
Sandland has competitive advantage in the premium wine market through the use
various strategies. It has strategic plans of buying vineyards to keep a high competitive level.
They have made their decisions to develop their business by building the road to their vineyards.
It is always focusing on business basically on what they can produce, the quantity of production
and how to develop their brand. Its main goals are based on how to make good wine to satisfy its
customers’ needs (Esty and Saldutte, 2018 p.718). Through these goals and strategies, the
Sandlands has been able to gain competitive advantages.
In relation to Porter's 5 forces model, Sandland is trying to do extraordinary things
different their competitors. Based on Porter's 5 forces model, it is applying the competitor
Rivalry force by evaluating and examining the strengths of its competitors such as Bedrock
Vineyards. Through the Identification of the competitive rival from other competitors, the
sandland company is able to know how to compete effectively (Gaoming and Meizhen, 2014
p.40). Secondly, the sandland has applied the supplier Porter's model through the determination
of the potential suppliers they have. They have evaluated the quality of their wine so as to
determine the value it can cost within the market. This has helped the company to lower the
price of its wine so as to suit the pocket of many customers.
The threat substitution is another of Porter's 5 forces model applied by the sandland
through production of wine in a different way from their competitors (Porter, 2018 p.25). This
has helped it gain more customers and competition advantage over their competitors. The
strategy of the sandland vineyard is focused on working with small and old vine to produce
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quality premium wine different from their competitors. The strategy of doing their things in
unique way has added competitive advantages to the company. Most of the customers think that
their wine is quality simply because they have planned to do it different way from their
competitors.
The last Porter's 5 forces model in connection to sandland is the threat to the new entry.
Sandland has established the level of cost encountered the production of their wine. They have
come up with a better ways to convince people about their quality wine. The sandland marketing
strategy based on BLUE OCEAN STRATEGY is reflected by how it creates the uncontested
market space for its wine (Kim, 2015 p.105). It has produced its wine differently from other
competitors. Its vineyards have been unique and treated differently from those of competitors. In
addition, they have made the competition irrelevant by trying to corporate with their competitors
for better performance. They have created and captured the new demand for its premium wine by
breaking the value cost of the trade off. It has contacted its activities in a different way and low
cost different from its competitors hence gaining a competitive advantage.
In recommendation, sandland should make use of the new technology innovations in the
productions of its wine. This will improve the quality of their products and increase the number
of potential customers. It should as well focus on the quality of their wine all the time to satisfy
the customers’ needs.
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References
Esty, B. and Saldutte, G., 2018. Sandlands Vineyards. Journal of HBS Strategy Case, pp.718-
438.
Gaoming, J. and Meizhen, L., 2014. Sustainable Management of the Restored Hunshandake
Sandland: Basic Scientific Research and Income Generation. Innovative ways for a
sustainable use of drylands: final report of the Sumamad Project, p.40.
Kim, W.C., 2015. Blue ocean strategy: from theory to practice. California management
review, 47(3), pp.105-121.
Porter, M.E., 2018. The five competitive forces that shape strategy. Harvard business
review, 86(1), pp.25-40.
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