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Harvard Case - Río Curicó: DDI Role Material

"Río Curicó: DDI Role Material" Harvard business case study is written by Julian J. Zlatev, Kathleen L. McGinn, Katherine Chen, Shaaref Shah. It deals with the challenges in the field of Negotiation. The case study is 14 page(s) long and it was first published on : Mar 26, 2020

This case study recommends that R'o Curic' should pursue a joint venture with DDI to expand its operations into the United States. This recommendation is based on a thorough analysis of the case study, which considers the following factors:

  • R'o Curic''s strong brand and reputation in Chile
  • DDI's extensive experience and expertise in the US market
  • The complementary nature of the two companies' businesses
  • The potential for significant growth in the US market

2. Background

R'o Curic' is a leading producer of wine in Chile. The company has a strong brand and reputation in Chile, and it is looking to expand its operations into the United States. DDI is a leading distributor of wine in the United States. The company has extensive experience and expertise in the US market, and it has a strong distribution network.

3. Analysis of the Case Study

A thorough analysis of the case study reveals the following:

  • Strategic fit: A joint venture between R'o Curic' and DDI would be a good strategic fit. The two companies have complementary businesses, and they share a common goal of expanding their operations in the United States.
  • Financial benefits: A joint venture would provide R'o Curic' with access to DDI's distribution network and expertise in the US market. This would allow R'o Curic' to increase its sales and profits in the United States.
  • Operational benefits: A joint venture would allow R'o Curic' to leverage DDI's operational expertise in the United States. This would allow R'o Curic' to improve its efficiency and reduce its costs.
  • Market potential: The US market is a large and growing market for wine. A joint venture between R'o Curic' and DDI would allow R'o Curic' to tap into this market and grow its business.

4. Recommendations

Based on the analysis of the case study, we recommend that R'o Curic' pursue a joint venture with DDI. We believe that this joint venture would be a good strategic fit for both companies, and it would provide R'o Curic' with the opportunity to expand its operations into the United States.

5. Basis of Recommendations

Our recommendations are based on the following considerations:

  • Core competencies and consistency with mission: A joint venture with DDI would be consistent with R'o Curic''s core competencies and mission. R'o Curic' is a leading producer of wine in Chile, and it is looking to expand its operations into the United States. A joint venture with DDI would allow R'o Curic' to do this by leveraging DDI's expertise in the US market.
  • External customers and internal clients: A joint venture with DDI would benefit both R'o Curic''s external customers and internal clients. External customers would benefit from having access to a wider variety of wines from R'o Curic'. Internal clients would benefit from the increased sales and profits that would result from the joint venture.
  • Competitors: A joint venture with DDI would help R'o Curic' to compete more effectively with its competitors in the US market. DDI has a strong distribution network and expertise in the US market, which would give R'o Curic' a competitive advantage.
  • Attractiveness ' quantitative measures if applicable (e.g., NPV, ROI, break-even, payback): A joint venture with DDI would be financially attractive for R'o Curic'. The joint venture would provide R'o Curic' with access to DDI's distribution network and expertise in the US market. This would allow R'o Curic' to increase its sales and profits in the United States.

6. Conclusion

We believe that a joint venture between R'o Curic' and DDI would be a good strategic fit for both companies. We recommend that R'o Curic' pursue this joint venture.

7. Discussion

There are other alternatives that R'o Curic' could consider, such as entering the US market on its own or acquiring a US wine company. However, we believe that a joint venture with DDI is the best option for R'o Curic'. A joint venture would allow R'o Curic' to leverage DDI's expertise in the US market, and it would reduce the risk of entering the US market on its own.

There are some risks associated with a joint venture with DDI. For example, R'o Curic' could lose control of its brand or its operations in the United States. However, we believe that these risks can be mitigated by carefully negotiating the terms of the joint venture agreement.

8. Next Steps

If R'o Curic' decides to pursue a joint venture with DDI, the next steps would be to negotiate the terms of the joint venture agreement and to obtain the necessary approvals from the relevant regulatory authorities.

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Case Description

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