Prepared By: Bhupinder (Steve) Sanghera
What is their business – Level Strategy?
The business level strategy that Ben and Jerry’s Inc. adopted was one of entering the Superpremiuim ice cream market, by creating a product that was targeted and had a high perceived value. Ben and Jerry’s Inc entered the industry in 1978, their not straddlers nor where they an organization that had to reposition itself. There strategy was to introduce a product that was both unique and high quality, Ben and Jerry’s Inc was an organization that conducted and had a good mix of business level activities. They entered an industry that had low barriers to entry and low costumer switching costs. There strategy was to cater to a targeted market of 25-40 year old individuals with a product that was of high quality and taste. The expected retaliation from the industry giant Haagen-Dazs was considered as low. There strategy helped them gain a sustainable advantage over their rivals by having a product that uses no chemicals, working with suppliers that have the same beliefs and social responsibility as there company does. Ben and Jerry’s Inc’s strategy was to have a product that no other existing competitor had, the creation of Chunky ice-cream was a great strategy to differentiate them form the competition. Access Ben and Jerry’s financial and market performance?
Ben and Jerry’s had a great financial performance in the 1980’s the company had grown by 100%. Their performance into an existing industry was great, they managed to enter an industry as a “mom and pop” organization and grow the company into a multi-million dollar organization. Ben and Jerry’s Inc offered a product at a premium price and catered to a market that can and would pay the premium for their ice cream. Ben and Jerry’s Inc was an organization that consistently grew year over year, they had grown by 30 percent from 1988 to 1992. Furthermore during this grow phase they had managed to be a profitable company and share...
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