Chateau St. Michelle

Undergraduate
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Miscellaneous
Pages 2 (502 words)
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Chateau Ste. Michelle winery is one of the oldest and most prestigious winery. Its wines have won many awards due to the tradition, innovation and high standard. Chateau Ste. Michelle grows its own grape and uses the French oak barrels. All of the winemakers have learned their skills in Europe and Chateau Ste…

Introduction

The above information is probably the only information known to wide audience about Chateau Ste. Michelle, however, under the closer examination some of the competitive strategies become obvious.
Chateau Ste. Michelle has a specific effort to please customers, makes offensive and defensive moves to counter rival's actions and responses to market conditions, thus strengthening its market position. The goal of the competitive strategy is to do the better job in providing what buyers are looking for. It is possible to say that Chateau Ste. Michelle has the edge over rivals in attracting buyers and coping with competitive forces - being among the top preferred brands is an evidence of this. One of the distinct features of the Chateau Ste. Michelle is that the top management pays close attention to performing value chain activities differently than rivals - for example, growing the grape on its own rather than buying it from suppliers. It creates additional value in the eyes of the consumers.
Out of the five competitive strategy approaches the broad differentiation strategy is the most applied in this specific company. For example, Chateau Ste. Michelle does not apply low cost provider or focused market niche strategy because its products are of higher price compared to the competitors. In return, the customers get more differentiated products at the cost that corresponds to the high quality. ...
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