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In the beginning they had to face several problems which had to be solved before entering the market. This planning phase took from to followed by a test market phase in One of the mayor problems was to find a partner who could provide an adequate distribution network. Also with Unilever as its parent company the company has a new financial strength which allows them to expand marketing strategies and research and development.
The company uses its strengths and the opportunities in order to fight against potential threats and weaknesses they face due to the lack of huge market share. The company is famous for its innovative flavors, unique taste and fancy marketing.
Generally super-premium ice-cream is characterized by a greater richness and density than other kinds of ice-cream and is therefore sold at a relatively high price.
The company is now a leading ice-cream manufacturing company known globally for its innovative flavors and all natural ingredients made from fresh Vermont milk and cream2 with its headquarter still Vermont.
Both co- based in Vermont5. Underlying this mission is the determination to seek innovative ways of addressing all three components, while holding a deep respect for employees and the community at large.
Customer loyalty Developing customer loyalty is another strategic move to gain a competitive advantage and to prevent that other companies can easily enter the market9. Product differentiation One way of gaining a competitive advantage is the use of a differentiation strategy to provide a better product for which buyers are willing to pay a higher price.
Suppliers The suppliers to the ice-cream industry are dairy farmers, paper container manufacturers, and suppliers of various flavors. Such suppliers are a moderate competitive force, given that the ice-cream industry they are supplying is a key customer and that there are multiple suppliers throughout the nation a producer of ice- cream can choose from.
Therefore, the ice-cream suppliers have only moderate power to negotiate prices. Buyers The power of buyers is relatively high because buyers are a large group, consisting of individual customers, supermarkets and restaurants - both nationwide and globally.
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Since retailers purchase ice-cream products in large quantities, this gives buyers substantial power over negotiating the price. In addition, there are many ice-cream products to choose from, so the switching costs of buyers to competing brands are relatively low.
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Substitute products There are a lot of products in the frozen food industry pop-stacles, pies, and cake the consumers can choose from. It is very easy for the buyers to switch to substitute products which is an indicator of the strength of this competitive force.
Since substitute products are readily available and lower priced compared to the relatively high priced super-premium ice-cream, the competitive pressures caused by substitute products are strong. Potential new entrants The barriers to entry into the ice-cream industry are moderate due to the brand preferences and customer loyalty for larger and more established rival companies.
Abbildung in dieser Leseprobe nicht enthalten Figure 1: Model of the Five Competitive Forces As shown above, some competitive forces on the ice-cream industry are relatively strong. The use of higher quality ingredients has created a unique brand image that helps develop customer loyalty.
Stakeholders The stakeholder concerns over health and nutrition is a strong force on the icecream industry. Sensitive consumer awareness and demand for low-cholesterol or lowfat foods can force companies to respond with ingredient substitutions and differentiated product lines to stay in business.
If this strategic moves works well the company could gain a significant competitive advantage over those companies that resist incorporating socially progressive values into their strategies. SWOT Analysis Another tool to analyze strategies of the company is by examining the strengths and weaknesses of its internal resources, and then identifying the external threats and opportunities By developing a clear understanding of these factors, one can evaluate where the company should go from here.
The following table identifies these forces. In the highly competitive super-premium ice-cream industry, the key factors of success are a good distribution network, product differentiation, customer loyalty and unique advertising.Download the full company profile: Procter & Gamble Company Profile - SWOT Analysis Euromonitor International's report on Dunkin' Brands Group Inc delivers a detailed strategic analysis of the company's business, examining its performance in the Consumer Foodservice market and the global economy.
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