the cordilheira de santana case, from now on referred to simply as cordilheira, was conducted and reported with the main purpose of contributing to the understanding of the process of strategy formulation in the winery sector. it presents the case of a recently created small firm aiming to compete in the market by offering high quality based on reduced premium line products, with prices established in accordance. even so, it has not achieved the expected results. the wine industry with its basis in the wineries of the extreme south of brazil, which is the most productive sector in the whole country, is also discussed. the case study began in 2008, when rosana, owner and director of the company, travelled from s？o paulo to porto alegre and highly concerned that the expected results had not been achieved. data included as a technical note on the wine industry provides information on the industry as a whole, enabling students to reconsider the firm′s positioning in the market. the teaching note that follows provides the professor with information that will allow him to explore several perspectives that will have to be faced by rosana further. she may choose to strengthen the present strategy or to take it in a new direction.