Diamond Estate Wines & Spirits Inc.: Growth Challenges in a Fragmented Industry
(9 pages of text)
Case (Pub Mat)
In 2019, 15 years after entering the Canadian wine industry, Diamond Estate Wines & Spirits Inc. (Diamond), located in the Niagara Peninsula of Ontario, was poised for growth. In a fragmented industry with local, national, and international competition from well-established and new players, Diamond had decent positions in many industry subsegments. One aspect of Diamond that set it apart from other small wineries was its distribution business, allowing access to valuable channels in the Canadian market. The company had proven itself capable of most aspects of the value chain in the wine industry and was poised for growth. The question was, which of the many attractive options should Diamond pursue?
This case was written for use in a capstone undergraduate strategic management course, such as one in business strategy, management thinking, or strategic management. It is comprehensive and requires students to draw on external and internal environmental factors and analysis in their discussion. Therefore, use in the second half or near the end of a fourth-year strategy course is appropriate. It could also be used in a graduate-level strategy course; the wine industry is sufficiently complex to warrant an in-depth look by more senior students, particularly if they conduct additional background research prior to case discussion.
By working through the case and assignment questions, students will have the opportunity to do the following:
- Appreciate the complexities of an industry environment through analysis of the competitive wine industry in Canada.
- Understand the interplay between industry characteristics and the attributes of an industry incumbent to determine the competitive strength of Diamond.
- Recognize industry growth options, as illustrated by this case of a small Canadian winery.
- Synthesize all of the case information to compare the various growth options, making a recommendation for the preferred course of action for Diamond.
Canada, Small, 2019
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