Andreas Antoni

Lailan Natasha Putri

Muhammad Maulana

Idzmil Mohamed Hashim

Prio Darsono
Gracia Sekar Kinanti Putri

Xavier Damien Hubert Henry

Frogs Leap Winery

Frogs 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 Synopsis

The 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 Synopsis

Due 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 Identification
1) Has Frogs Leap Winery obtained
Sustainable Competitive Advantage
(SCA)?
2) How can Frogs Leap Winery remain
sustainable for the next 10-20 years?

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

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

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.

Porters Five Forces Analysis

Low

Non-existent

High
High

High

VRCN/VRIN Test
Core Competence
V
Organic and Biodynamic
Production System Using
EMS and Green Energy,
Creating
High
Quality
Products

Yes

Yes

Yes

Competitive
Consequence

Yes

Sustainable
Competitive
Advantage

Established, fun brand with

a green image

Yes

Yes

Yes

Yes

Sustainable
Competitive
Advantage

Direct-to-Consumer
Distribution Channels via
Tasting Rooms and Wine
Clubs

Yes

No

No

No

Competitive
Parity

Engaged,
Workforce

Yes

No

No

No

Competitive
Parity

Motivated

SWOT Analysis

Established, strong brand name

among aficionados.
One of the best EMS in Napa
Valley region
Motivated employees.
High customer loyalty.
Wide product range.

The emerging LOHAS

demographic
Growing demand from
international market.
Growth of social media and online
marketplace.
New product development

Large debt load.

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

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.

Period
2015-2020

Action Plans
1) Solve internal issues such as land utilization
maximization
and
production
maximization,
succession planning, getting publicity.
2) Gain the market share on the growing LOHAS
demographic.
3) Conduct marketing research on current and
potential international markets.
4) Develop and innovate on other products such as
sparkling wine.
5) Create hype on potential markets via social media.
6) Create more direct-to-consumer sales channels

2021-2030

1)
2)
3)
4)

2031-2035

1)
2)

Penetrate 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.
Expand sales of fertilizers to other industries.
Strengthen position in international markets. If
possible, create direct-to-consumer channels in
international market.

Conclusion
1) Has 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 1020 years.

Lessons Learned
Sustainability 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 Learned
The 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