CASE ANALYSIS – Dippin' Dots Ice Cream

My spouse and i. Key problems and problems

• Soaring operating costs and plummeting sales

• Competition by copycat goods (loss of patent)

• International shipping storage concerns

• Price tag storage problems – ease factor

• Lack of new growth options in product lines

II. Analysis of external environment

Standard environment

• Technological – better storage system in retail locations,

• Economical – working costs rising

• Sociocultural – improvements such as piece concept, impartial scoop shop, etc exceeded Dippin' Spots ice cream of the future innovation

• Legal – patent violation lawsuit was dismissed, allowing competition to sell similar items

• Market – older generation still enjoys Dippin' Dots, as well as launching newer generations to the product

Industry environment

• Potential entrants – high danger due to loss of patent; product can be copied by competition and previous employees

• Suppliers – high suggestions costs to flash freeze ice cream gives suppliers method power due to unique very cold process

• Buyers – low buyer power since they shell out a high high grade for the product and are more dedicated fans

• Alternatives – high power of substitutes because there are many substitutes – large variety of freezing desserts just like other ice cream brands, frosty custard, sherbets, gelato, and so forth

• Sector competitors/rivalry – high competition from family owned businesses, complete line dairies, and large international companies

Rival environment

• There are two giants ruling U. S i9000. ice-cream sector: Nestle and Unilever PLC of London and Rotterdam, along with about 500 small businesses

• Challenge for producers should be to woo clients away from competition and preserve a faithful fan base by simply continuing to innovate

III. Analysis of internal environment

Strengths

• Differentiated product

• Water nitrogen procedure

• Pallet reefers – ability to travel across nation without burning

• Creative marketing strategy

• Unique venues such as amusement parks, shopping malls, water parks, festivals, and conventions

Weaknesses

• Inability to maintain in a standard freezer -- inconvenient

• Inability to generate at home edition similar to first product

• Failed joint venture with McDonalds

• Incapability to increase to various other markets so that you can compete with other competitors

um Ex: when ever competitors announced healthy variations of merchandise

• Would not expand to other places, not as easily obtainable as competition

• Little focus group, originally designed to target 8-18 year olds

IV. Alternatives

• Broaden franchise network for information shops – opening retailers

• Broaden network of franchise snack machines

• Offering even more variety including low fat alternatives

• Broaden operations in to different market segments – offshore

• Less of a target strategy in order to capture even more market portions through creation of products that appeal to all age groups

Sixth is v. Analysis of alternatives

| |Pros |Cons | |Expand franchise network for scoop|Ability to reach a more substantial population |Increased storage costs | |shops |More offered to loyal buyers |High labor costs | | |Increase awareness amongst consumers | | |Expand network of franchise |Low labor costs |Maintenance...

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