Links to a short video and two news articles about Cameron Hughes wines are included herewith. Cameron Hughes is a wine merchant (and is one of Costco’s suppliers). Cameron Hughes does not own any grapes (he is not a winemaker), but his name graces the label of tens of thousands of cases of wine. The video and news articles discuss Cameron Hughes’ business model and origins: how he purchases wine from Californian winemakers, filters it, creates blends, bottles and labels it, packages, stores, ships, and provides a unique set of services to meet its target market.
Write brief but well-thought out answers to the questions below:
- Describe the value chain (input-transformation-output) model at Cameron Hughes?
- How does Cameron Hughes positions its firm (and differentiate itself from other wine merchants)?
- How does Cameron Hughes adds value in the wine industry? Could other winemakers do the same thing? Why / Why not?