Tempur Sealy International (C)

Benjamin C. Esty; Lauren G.  Pickle

Supplement | HBS Case Collection | September 2017

Tempur Sealy International (C)

by Benjamin C. Esty and Lauren G. Pickle

Abstract

Analyzes the commercial relationship between Tempur Sealy and Mattress Firm following the events discussed in the (B) case.

Keywords: Porter's 5 Forces; bargaining power; buyer power; customer power; supplier power; negotiations; value creation; Value Capture; Business Strategy; competition; cooperation; private equity; consumer durables; consumer discretionary; mattresses; B-2-B; industry dynamics; leadership; compensation; Corporate Strategy; Business Strategy; Value Creation; Competition; Cooperation; Distribution; Negotiation; Industry Structures; Customers; Relationships; Distribution Industry; Manufacturing Industry; United States; South Africa;

Language: English

Format: Print

3 pages

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Citation:

Esty, Benjamin C., and Lauren G. Pickle. "Tempur Sealy International (C)." Harvard Business School Supplement 718-424, September 2017.

Case | HBS Case Collection | February 2018 (Revised March 2018)

Sandlands Vineyards

Benjamin C. Esty and Gregory Saldutte

Approximately 80% of the wineries in the U.S. break even or lose money. An even greater percentage lose money on an economic basis (i.e., after a charge for the cost of equity). Tegan Passalacqua is a successful, young, Californian winemaker who specializes in making “old vine” wine (i.e., wine from vines that are at least 60 and up to 100+ years old). By day, he is the head winemaker at Turley Wine Cellars, a leading Zinfandel producer. In his spare time, however, he runs his own winery called Sandlands, which produces premium wines using historic, out-of-favor grape varieties such as Carignane, Mataro, and Chenin Blanc. Despite the odds, Sandlands appears to be succeeding. The question is why and whether his performance is sustainable. The case is set in December 2017 as Passalacqua was deciding whether to buy a building and develop a winery at a cost of up to $500,000. Because he already owns an old vine vineyard, and has limited resources, he must decide if this is the right investment to make next.

Keywords: wine; winery; vineyard; competitive advantage; market attractiveness; Porter's 5 Forces; capital investment; industry attractiveness; Vertical Integration; entrepreneurship; performance analysis; Napa Valley; Agriculture; Entrepreneurship; Business Strategy; Competitive Strategy; Competitive Advantage; Vertical Integration; Segmentation; Food; Supply Chain; Industry Structures; Five Forces Framework; Retail Industry; Food and Beverage Industry; United States; California; Napa Valley;

Citation:

Esty, Benjamin C., and Gregory Saldutte. "Sandlands Vineyards." Harvard Business School Case 718-438, February 2018. (Revised March 2018.) View Details

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Approximately 80% of the wineries in the US breakeven or lose money. An even greater percentage lose money on an economic basis (i.e., after a charge for the cost of equity). Tegan Passalacqua is a successful, young, Californian winemaker who specializes in making “old vine” wine (i.e., wine from vines that are at least 60 and up to 100+ years old). By day, he is the head winemaker at Turley Wine Cellars, a leading Zinfandel producer. In his spare time, however, he runs his own winery called Sandlands which produces premium wines using historic, out-of-favor grape varieties such as Carignane, Mataro, and Chenin Blanc. Despite the odds, Sandlands appears to be succeeding. The question is why and whether his performance is sustainable. The case is set in December 2017, as Passalacqua was deciding whether to buy a building and develop a winery at a cost of up to $500,000. Because he already owns an old vine vineyard, and has limited resources, he must decide if this is the right investment to make next.

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Tempur Sealy International (C)

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