Case 39 DippinDots

Topics: Strategic management, Entrepreneurship, Marketing Pages: 13 (1254 words) Published: December 15, 2014
39
Dippin’ Dots Ice Cream
Alan B. Eisner
Pauline Assenza
Brian R. Callahan
McGraw-Hill/Irwin
Strategic Management: Text and Cases, 4e

Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

39 - 3

Dippin’ Dots Ice Cream
Icebreaker Question
• How many of you have tried a specialty ice cream?
• How many of you have heard of “Dippin’ Dots?”
• How do you make decisions about which dessert products
to buy?
• Where do you buy frozen dessert products?
• How willing are you to experiment with new products?
• If you were going to be entrepreneurial and introduce a new product to this market, what might you have to consider?

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Dippin’ Dots Ice Cream
Discussion Question
1. Analyze Dippin’ Dots external environment.
What are the general environmental factors that
have impact on the industry?

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Dippin’ Dots Ice Cream
Discussion Question
2. What are the external forces of competition
affecting the frozen dairy industry?

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Dippin’ Dots Ice Cream
Discussion Question
3. Analyze Dippin’ Dots’ internal environment.

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Dippin’ Dots Ice Cream
Discussion Question
4. What business level strategy does Dippin’ Dots
appear to pursue?

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Dippin’ Dots Ice Cream
Discussion Question
5. What opportunities for growth should Dippin’
Dots pursue?

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Dippin’ Dots Ice Cream
Q 1. General External Environment
• External Scanning
- Surveillance of a firm’s external environment:
• Predict environmental changes to come
• Detect changes already under way
• Proactive mode

• External Monitoring
- Track evolution of:
• Environmental trends
• Sequence of events
• Streams of activities

Q1.
Q1.What
What
general
general
environmental
environmental
factors
factorsimpact
impact
the
theindustry?
industry?








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Dippin’ Dots Ice Cream
Q 1. General Environment

Demographic: Rising levels of affluence – more
discretionary dollars; shift in geographic population to South and West – hotter weather, more appeal to frozen products
Sociocultural: Greater concern for healthy diets/fitness – single serving concept has appeal; possible MTV/sports
celebrity endorsements attracts growing teenage market
Technological: manufacturing/distribution opportunities
Economic/Global: Access to capital; China as a market;
consolidation in food/beverage industry; sector competitive
and profitable

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Dippin’ Dots Ice Cream
Q 2. External Competitive Environment
Competitive Intelligence:
• Define and understand a firm’s industry
• Identify rivals’ strengths and weaknesses
- Intelligence gathering (data)
- Interpretation of intelligence data

• Helps a firm avoid surprises

Q2.
Q2.What
Whatare
are
the
external
the external
forces
forcesofof
competition?
competition?

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Dippin’ Dots Ice Cream
Q 2. Competitive Forces

Suggested: The reason for competition
in the frozen dairy industry is the
market’s potential. A look at the most
recent product and sales trends of ice
cream shows a category with some
opportunity for innovation, especially
in the novelty area.

Suppliers
Power

Threat of
Substitutes
High

Rivalry
Very High

Low

Buyers Power
Med to High

Suggested: Low – Supplier
commodities are those such
as milk, sugar, etc.
Suggested: Limited number and
variety of available distribution
channels are available to
newcomers, particularly in large
grocery store chains.

Suggested: High –
there are many
alternatives to ice
cream for desserts or
snacks such as cake,
pie, fruit, candy, etc.

New Entrants
Barriers
Med

Suggested: Based on the current business
plan, the buyers are the franchisees and
the general public, 90% of whom
consume ice cream and frozen desserts
(data from AC Nielsen). If Dippin’ Dots
expands into the grocery chains, who
might the buyers be, and what would
these competitive forces be like then?

39 - 13...
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