Casella wines followed blue ocean strategy by utilizing two tools i. Casella wines created yellow tail, a wine whose strategic profile broke from the competition and created a blue ocean. Casella wines is based in yenda, australia, which has a. The ocean was indeed very red with far more competition vying for a small share of the market. Casella wines began its meteoric rise by taking a different perspective on the wine market. In contrast, red ocean strategy is about how to outcompete in the existing market space. In july 2001, australias casella winery introduced yellow tail into this highly competitive us market. Benchmarking trying to offer a little more for a little. Blue ocean strategy casella wine video case part 1 in. Red ocean represent all the industries in existence today. The upshot of this analysis was that casella wines created yellow tail. In 2001, the yellow tail brand of wines, launched in partnership with australias casella wines, achieved considerable success in the us market, despite intense competition from californian, italian, and chilean wines. In executing a blue ocean strategy, how can a company overcome various organizational hurdles and build trust and commitment among people who work for or with the company. The blue ocean strategy book debunks the popular notion that in order to win in business, we must beat the competition.
The blue ocean strategy is based on the value innovation. Part a provides a visual overview of the wine industry setting preyellow tail. Instead of offering wine as wine, casella created a social drink accessible to. Wine company casella wines used this analytical process to make its yellow tail brand the fastest growing wine in the history of american and australian. Blue ocean strategy is a powerful framework for finding new business opportunities. Not only that, air asia was the first to set up a direct flight from kl to chiang mai in thailand as well. They redefined, through their blue ocean strategy, a wine that was fun to drink. Blue ocean strategy strategic management wine scribd. Casella also discovered that most americans actually found wine. Fancy wines tried to offer more of everything tasting complexity, refined image, aging, vineyard history and prestige, and price. Creating a blue ocean in the us wine industry that is free for instructor download at. Blue ocean strategy is about creating and executing such strategic moves that unlock uncontested market space which render competitors irrelevant. Casella wines with the help of the four actions framework created a new, uncontested, highlysuccessful blue ocean amid the highly competitive bloody red ocean industry. Blue ocean strategy ends with ten cognitive traps that can deter you from creating blue oceans or that jeopardize your execution.
Emergence of casella wines producer of yellow tail wine a. This wine industry case study, accompanied by a twopart video, examines the. The limitations of blue oceans strategies and an unexpected alternative author. From humble beginnings, casella wines has become australias greatest wine producer. With this insight, casella wines was ready to explore how to redraw the. The opportunities in the competition can also be grabbed with a different strategic framework that is matchless with any competitor in the industry. The strategic logic of high growth hbr julyaugust 2004. The strategy tool the company built its business upon is now used.
Blue ocean strategy institute bos 019, available at. Dan herman the vast red and blue oceans of the marketing world tsunamied into our awareness and vocabulary a few years ago, when two insead professors, w. Casella also discovered that most americans actually found wine a turnoff. Casella wines created yellow tail, chrysler created the minivan, apple created the imac. Casella a blue ocean strategy example casella is an.
Red ocean strategy blue ocean strategy we share ideas a change in focus a. Six principles of the blue ocean strategy the risks inherent in a traditional, red ocean business strategy are well known. They discovered that by coming out with a new offering, which was nontraditional and fun, they appealed to the 3 times as many u. Kim and mauborgne use casella wines yellow tail line of wines as an example of a successful blue ocean strategy. Learn the concepts of tipping point leadership and fair process that ensure effective execution of blue ocean strategy. The company proved that with the blue ocean strategy, a company can be successful and profitable. These will be phrased as myths that are then debunked. Thus, enabling the company to follow differentiated strategic profile called a value curve. A decisionanalytic approach to blue ocean strategy development. It acted on the blue ocean strategy to unlock uncontested market space that changed the face of the u. It is not a competitive advantage, but what makes competition simply unnecessary due to the fact that the company enters a fundamentally new level. Casella a blue ocean strategy example casella is an australian wine company from mkt 421 at university of phoenix. Sailing into a blue ocean to understand the power of strategic moves that create blue oceans consider the us wine.
Chan kim and renee mauborgne is an outofbox kind of breakthrough book, that gets the best out of you. A case in point is the australian company casella wines that decided to enter the american wine market. But its not always clear how to create a blue ocean strategy for yourself. Chan kim and rene mauborgne, claimed that competition can be rendered irrelevant. Pdf purpose from humble beginnings, casella wines has become australias. Part b of the dvd movie then documents how one firm, casella wines, created a blue ocean of new market space within this highly competitive us wine industry with its introduction of yellow tail. Beer, spirits and readytodrink cocktails, which capture more than three times as much in consumer sales as wine. Casella wines of australia shifted the strategy canvas of the u. Achieved via the delivery of features that have a highest marginal benefit to customer needs. A case study on yellow tail wines find, read and cite all the research you need. While australias largest brewer slowly tears apart its less than successful attempt to also run a wine empire, one of our most internationally competitive and innovative winemakers is stepping into the beer business. Casella wines is based in yenda, australia, which has a population of approximately 1400 people. Casella wines casella wines was an australian wine company.
You can still send a message to the channel owner, though. Part b explores, through interviews with the principal players behind the launch of yellow tail, the development and execution of casella s blue ocean strategic move. Blue ocean strategy imagine a market universe composed of two sorts of ocean. Value innovation strategy competes in an uncontested market space. In the 1990s, wine in the united states occupied two segments. Several years ago, they were looking to penetrate the wine market of the u. This wine industry case study, accompanied by a twopart video, examines the success of yellow tail in crafting a winning blue ocean strategy in a mature. Value curve yellow tail wine australian casella wines created a blue ocean strategy that, in just two years, caused its yellow tail wine to.
Yet, to what extent can casella wines success be attributed to the companys making retail employees. They redefined, through their blue ocean strategy, a wine that was fun to drink and easy to buy. By looking at the alternatives of beer and readytodrink cocktails and thinking in terms of noncustomers, by redrawing the strategy canvas of the u. Managers now need to know the principles and risks that underlie the blue ocean strategy. Casella says his company was already on a path to differentiate itself from competitors and find untapped markets before the term blue ocean strategy was defined. Pdf blue ocean strategys fatal flaw manuel angelucci. Yellow tail wine and entrepreneurship essay readessay. The purpose of this paper is to describe how the company has become so successful. Blue ocean strategy has challenged business leaders to. After an initial failure in the late 1990s to create an import brand with casella wines in australia, deutsch found success with the yellow tail brand the number one australian wine export and u. All leveraged existing capabilities in new product areas. Value innovation is the cornerstone of blueocean strategy.
The united states is the third highest country which consumes wine. Yellow tail is a brand of wine produced by casella wines pty ltd. Chloe ewing yellow tail wine case mktg 450 3242019 in the case of the blue ocean strategy and yellow tail wine, examines the competition within the wine industry. In july 2001, australias casella winery introduced yellow tail into this highly.
See standard industrial classification manual 1987 and north amer. It shows how by applying a reconstructionist view of strategy, the firm gained insight into how market and industry boundaries can be reconstructed. Casella wines must follow blue ocean strategy to make the competition irrelevent in the indian market for a successful brand creation. Casella wines,an australian winery made a easy to enjoy wine for everyday by looking at demand side of the industry alternatives of. Therefore, the casella decided not to compete with french or italian wines on characteristics such as quality, product complexity or vineyard prestige. How to implement the blue ocean strategy third eye design. Instead, they presented their brand as fun and approachable, and targeted a new type of wine consumer. Effective blue ocean strategy should be about risk minimization and not risk taking. Blue ocean strategy how to create uncontested market.