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?