Coldstone Analysis Porter's Model

Topics: Ice cream, Baskin-Robbins, Ice cream parlor Pages: 3 (901 words) Published: October 27, 2011
Analysis of Cold Stone Creamery using Porter’s model
Cold Stone Creamery has been a very popular ice cream spot since 1988. Locations have have popped up all over the globe since then. Many enjoy their premium ice cream as well as the ability to customize it with countless ingredients to make their own personal creation, or simply chose from one of the suggested creations. Although the company has been successful in the past, it still faces many threats.

There are many competitors in the ice cream world that Colds Stone has to go up against. Some of their direct competitors include Marble Slab and Maggie Moos. These ice cream stores have very similar business models by offering many ice cream flavors and mix-ins allowing customers to customize their ice cream. Other competitors include Carvel, Baskin Robbins, and Ben and Jerry’s. Although these companies are also very successful, they do offer a slightly different type of product.

The threat of new Entrants into this type of market appears to be moderate. There are many successful, existing creameries, which might pose a challenge for new entrants. Another challenge for new entrants could be the current economic situation. People currently do not have a lot of disposable income to spend on luxuries such as going out for dessert. But economy, and existence of other companies aside, A new entrant to the market could pose a threat to Cold Stone. Customers of Cold Stone do not have any ties that would make them have to return to one of their stores for additional parts or services of the product that they receive, because once it is consumed, that’s it. This would make it very easy for consumers to go to a brand new store the next time they want ice cream.

Another factor that might make other new entrants look appealing is cost. Although people may like Cold Stones products very much, they are very expensive. The base of all of their ice creams use premium ingredients and the additional cost of every mix-in...
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