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Frog's Leap Case Study

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Frog’s Leap Winery is obviously not alone in having problems, whether they are external, internal, or simply out of their control. The state of the economy affects all businesses. Frog’s Leap does “discount retailing” and cut their profits nearly in half by distributing to retailers for the sale of their wines. This is an excellent idea to get the brand out there and hopefully gain some loyal customers, but also puts a damper on the revenues the winery could be making by selling it direct to customers, especially when the economy has a good strong standing. As times change, more people are turning to exercise in order to maintain optimal health and steering clear from alcohol. With people being more health conscious, wine sales …show more content…

If you do not get the right amount of rain, or too much rain, it can destroy the vineyards, which is completely out of the control of winemakers. Determining whether to produce organic wine, or just grow organic grapes is also a struggle Frog’s Leap is not alone in. Also, it says in the case that Frog’s Leap produced its own olive oil and honey. Having a variety of products is good, but having more than just wine in a winery (that is not cheese of course) is kind of a different idea, and the group think it may be better to stick with just different varieties of wines rather than a variety of random products. Finally, state distribution laws put a damper on things and the rapid advancement of technology can sometimes be difficult to keep up with. It can be rather costly to upgrade to the “newest technology on the market.” Frog’s Leap decided to move toward energy self-sufficiency via investments in geothermal and solar power. Williams never would reveal how much this advancement cost, but I’m sure him deciding not to disclose it means it was rather expensive. Frog’s Leap opened the industry’s first LEED-certified wine tasting and office facility. Being a LEED business is good, but is the costliness really worth it? Now you have seen a few of the problems that we found with this case and we can move forward with our analysis and

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