How do you compete in tough markets?
“Strategy is about making choices, trade-offs; it’s about deliberately choosing to be different.”
Imagine you are in an Australian industry with about 200 competitors, how do you compete and grow? Back in 2001, that's the problem faced by John Casella of Casella wines. He quickly concluded that he needed to be more strategic than his well-resourced competitors.
By 2015, Casella had a 50% share of Australian wine in the competitive US market. Also, they exported more than a quarter of bottled wine exports - more than 12 million cases.
How did he do it?
When planning for growth he used a tool called a Strategy Map from the best-selling book Blue Ocean Strategy. This practical tool helps you look at existing competitive markets and choose how to compete - to choose how to be different.
The result of their planning was a new product called 'Yellow Tail' targeted at the American market. Many in the wine industry mocked the new product because it was different and did not do the same as other brands.
Yet US consumers loved Yellow Tail. In 2001, Casella sold 112,000 cases. In 2002, this leapt to 2 million cases. For the next few years, volumes doubled so that by 2005 they were selling 16 million cases.
So, how can you compete in tough markets? Listen to Casella: be more strategic than your competitors and use a strategy map. For more insights on competing in tough markets, check out the Competing on Value workshop.