Ben & Jerry’s Homemade Ice Cream Inc.: A Period of Transition Case Solution
Bargaining Power of suppliers
The industry has suppliers that provide dairy products and the other ingredients to the different companies. Moreover, the companies also purchase different ingredients from different suppliers as they want innovation among their products. Thus, the bargaining power of the suppliers is high.
Threats of the New Entrants
The industry of the Ice Cream is capital intensive as it includes the purchase of dairy products, different flavors of Ice Creams and different topping ingredients from the suppliers. Moreover, the barrier to the entrance is also high because the Ice Cream is the mature marketand the big giants Haagen Dazs and Ben & Jerry’s are competing in the market. Furthermore, if the new entrants invest heavily, then the switching cost for it would also rise. Thus, the threat of new entrants is low.
The industry of Ice Cream is a mature industry.Moreover,industry has extracapacity to be explored with the innovations. The competitors are competing against each other with the innovations in flavors and types of the Ice Creams in the industry. Thus, the threat of the Rivalry is high.
Threat of Substitute
There are competitors in the industry that have maintained their innovations in the flavors of Ice Cream. Moreover, the buyers are attracted by the different companies with their positioning strategies. Thus, the threat of the substitute is high.
The strength and weaknesses depict the internal and external analysis of the company that further explores the assessment for the VRIO (Value, Rarity, Imitability and Organization) analysis. The analysis of the VRI Otherefore,has further formulated that led towards part of the larger strategic schemes of the Ben & Jerry’s. Moreover, this is helpful in executing the process for competitive advantages of the organization as well.
The super-premium Ice Cream of the Ben & Jerry’s involves richness of the cream as it was different from the traditional market. Moreover, the flavors it offered were distinguished the Ben & Jerry’s commodities of the others. Furthermore, the toppings of the Ice Cream come in different variety at Ben & Jerry’s. The number of flavors of the Ben & Jerry was 44 in 1991. The number of variety is also the strength for the Ben & Jerry’s to attract customers. The company is involved in the social responsibilities as well thus, this is advantageous for its reputation. Moreover, it can be hazardous for the company as well as the company has diverted from its core business and the costs to the social responsibilities also involve the miscellaneous expenses to the enterprise. The managers of the company were inexperienced and they did not know how to increase the sales of the company. Another reason for the decline of sales was due to the less marketing activities of the company.
Since Ben & Jerry has expanded in different regions and it has only two distributors the company, therefore has opportunities to get more distributors. There are many companies whose market is innovation intensive. Furthermore,Ben & Jerry’s needs to analyze and research in those markets for further expansion as the quality of products of the Ben & Jerry is un achievable. Furthermore, the USA market has increasing demand for the frozen commodities, i.e., yogurt as well as for low fat desserts thus, Ben &Jerry has space available for such products as well.
In the 1980s, the companies researched over the Ice Cream consumption and found that the customers prefer quality over the price of the ice creams. The consumers, thus, agreed to pay higher amount for the quality of the Ice Creams…………….
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