Thesis (MBA)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: The terms business model and business model innovation have only gained prominence over the
past two decades, whilst little of the research has been applied in a South African context.
The main objective of this thesis was to ascertain the reasons for success of a local business
through the research and application of the themes of business models, business model innovation
and blue ocean strategy to a local organisation. The subject matter of the thesis was Van Loveren
Family Wine Cellar, a family-owned South African wine farm that has seen significant success over
the past 15 years in a highly competitive and fragmented local market. To complete this process, it
was also necessary to gain an understanding of both the global and local wine industries, and how
South Africa has grown within this environment.
The format of the thesis is a case study, selected because of its relevance to gaining a rich
understanding of the context of the research and the processes enacted, thereby facilitating the
main objectives. The case study approach also provides a tool to aid in the education of business
strategy students, allowing the principles to be applied to new scenarios.
The findings of the study include that there has been a shift in both consumption and production of
wine from the traditional Old World to the innovative New World. This shift is being driven by new
consumers of wine who are less concerned with the mystique and legacy of Old World wine,
instead demanding wines that fit their lifestyles through easy drinking taste profiles with an ease of
selection.
This phenomenon is present in South Africa, where growth in the market is seen at lower price
points. New consumers who are selecting wines that compete with existing alcohol alternatives as
gateway products are driving this demand.
Van Loveren launched their Four Cousins Rosé in 2000, with exponential growth experienced
between 2004 and 2008, driving the product to be one of South Africa’s best-selling brands. The
findings of the study were that the Van Loveren Family Cellar had positioned itself, through
business model innovation, to capture the growth in new wine drinkers. Van Loveren had built a
business model that provided a framework within which strategy can take on competitors. Core to
their success were the long-term relationships with key buyers and the collaborative partnerships
that allowed Van Loveren to utilise external capabilities as part of their own business. The success
was also based on the leap of faith to enter the market in a sweeter taste profile, through the
development of a brand that resonated with consumers, and in packaging that provided an
attractive price point. The combination of these decisions allowed Van Loveren to capture
uncontested market and grow exponentially.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/97367 |
| Date | 04 1900 |
| Creators | Van Onselen, Leon |
| Contributors | Burger, Johan, Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | English |
| Type | Thesis |
| Format | xiii, 210 pages |
| Rights | Stellenbosch University |
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