Final project (lin shanghsien) Strategic Thinking and Analysis
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Transcript of Final project (lin shanghsien) Strategic Thinking and Analysis
Strategic Competition and Thinking
ICE CREAM INDUSTRY
2014Presented by│Lin Shang-Hsien 林尚賢 Comenius University
Agenda1.Define Ice Cream Industry2.Brief Introduction3.Economic Characteristics4.Key Driving Forces (External-Macro)5.Recent Development(External-Macro)6.PESTLE (External-Macro)7.Main Competitors (External-Micro)8.Main Factors of Competitive Success
2014
DefineDefinition of The Industry
Dairy IndustryGrocery Stores to Specialty
Shops
Introduction2014
Statistics
40% 40% 40%
Introduction2014
Top 10Ben & Jerry's
Baskin-Robbins
Introduction2014
「第一賣冰、第二當醫生! ?」The job which can earn the most is to sell ice cream, and the second is to become a doctor.
doctor??
Ice Cream??
Why?
Economic Characteristics 2014
Year44
46
48
50
52
54
56
58
60
Revenues of Global Ice Cream In-dustry
2008 2009 2010 2011 2012
Tota
l Rev
enue
(bill
ion) 60 Billions
70 Billions
2017 year
Big Market
Key Driving Forces 2014
Raise of Health Awareness
External
Environment│Macro
Source: Statistics offered by WTO
“Delicious” is no longer the only pursuit of ice cream in flavors
Some people can’t eat ice-cream with lactose
Key Driving Forces 2014
Increasing in Global Temperature
External
Environment│Macro
Source: GISS website statistics(departure from 1961-1990 baseline of 14.0°C, Jones et al. 1999).
Key Driving Forces
Globalization
External
Environment│Macro2014
Source: Statista website
Recent Development 2014 External
Environment│Macro
Source: Ice Cream: Global Industry Guide January 2014
Political Economical Social Technological Legislative Ecological
Country policies/ Government regulation will determine how to enter into a new country and what are the limitations.
Globalization in economy might reduce the tariff and make much easier to enter into a new country.
Raise of Health Awareness will change customers eating and buying behavior.
The Dairy Science and Food Technology (DSFT) provides consultancy services to ice cream enhancing company competence.
Labor Law in different countries will influence the cost and revenue of a company.
Global Warming will last the summer time and change the eating habits. It will also makes people become eco-friendly.
Special Tariff in different countries will influent our cost to enter into a new foreign market.
Income difference between countries will affect if we want to enter into a low-income or high-income country (Depends on the position of our product)
Location of retailing, manufacturing, and service business. All of them will affect our decision where to set up our company.
Environmental protection laws will affect the ingredients we use for ice cream in local market.
Water pollution and pollution control will affect the quality and health of ice cream products.
Life style will influent if they have the habit of eating ice cream or not.
2014PESTLE
External
Environment│Macro
2014
Main Competitors
External
Environment│MicroBen & Jerry’s ,
UnileverIce cream, Frozen yogurt, Sorbet, Ice cream novelty productsGlobal, 38 countries, franchisingTo make, distribute and sell the finest quality all natural ice cream and euphoric concoctions with a continued commitment to incorporating wholesome, natural ingredients and promoting business practices that respect the Earth and the Environment.
2014
Main Competitors
External
Environment│MicroBaskin Robbins, Dunkin’
Brands Inc. Ice cream, Frozen beverages, Ice cream cakes, Frozen treatsGlobal, 48 countries, 31 flavors, FranchisingServing ResponsiblyTo be recognized as a company that responsibly serves our guests, franchisees, employees, communities, business partners, and the interests of our planet.
2014
Main Competitors
External
Environment│MicroHäagen-Dazs,
Nestléice cream, bars, cakes, sorbet, frozen yogurtGlobal, 54 countries, FranchisingFind the purest and finest ingredients in the world and craft them into the best ice cream, sorbet, and frozen yogurt available. it is a way of doing business that is as demanding as it is uncommon.
2014
Main Factors of Competitive Success
Clear Segment and Target Market
Channels: Retail Stores & Franchising
Adapt and follow the environment change
Innovation (A number of Flavors)
Strategic Competition and Thinking
ICE CREAM INDUSTRY
2014Presented by│Lin Shang-Hsien 林尚賢 Comenius University
Agenda1.Define Ice Cream Industry2.Porter 5 Forces Analysis & factors │industry analysis
3.Strategic Group Analysis & Positioning │competitor analysis
4.Internal Analysis5.Core competencies analysis │main players6.Generic competitive strategies │main players7.Trends in this industry8.Conclusion
2014
DefineDefinition of The Industry
Dairy IndustryGrocery Stores to Specialty
Shops
2014
Porter 5 Forces Analysis & factors │industry analysis External
Environment│MicroPotential Entrants
Substitutes
Suppliers Buyers/CustomersCompetitors• High number competitors (in different sizes)• Big brands have own retail stores
(supported by mother company)• Customers can switch brands easily
• Technology & Materials are easy to acquire• The space of storage and transportation cost are high• Lack of Adequate distribution channels
• Other frozen dessert (Big companies produce all of them)
• No consequence to switch brand• Tendency to buy Low Volume• Discretion in whether or when to buy
• ICA (Ice Cream Alliance) materials
0.4
0.2
0.4
Market Share
Local Regional Company private Label Unilever, Nestle, Blue Bell
2014
Strategic Group Analysis & Positioning │competitor analysis External
Environment│MicroPrice & Quality
Numbers (Distributed Countries)
High
High
LOW
LOW
Medium
Medium
Private Labels
2014Internal analysis │main players
Internal Environment
Marketing• Clear Position : Environmentalist,
natural, eco-friendly and healthy products
• Franchise, retail, company stores• Super premium ice cream (no
artificial)
• Excellent slogan , flavors, and unique marketing strategy
• Franchise, company stores • Franchising fees are high
• Well-cognized brand name in global setting
• Finest ingredients• Super premium ice cream• Franchise, retail, company
stores
Finance• current ratio=3.59• Profit Margin=26.24%
• Current ratio=1.34• Profit margin=20.58%
• Current ratio=0.812• Profit margin=18.00%
Productio
n
• High cost of raw materials• Weak in production• Faster inventory turnover
• Cost of ingredients is high• periodic on-site inspection on
global production facilities
• employs stringent measure to storing of products so as to maintain the quality of the products
• Ice cream are produced in France and transported to Spain (main quarter of franchisee)
UnileverDunkin’ Brands Inc Nestlé
2014Internal analysis │main players
Internal Environment
R & D• Full-time R&D department• Its low-fat product production
matches the changing consumer tastes
• Innovation cost is high• Create more than 1000 flavors
until now
• Limited flavors
MIS• Provided over 1,200 hours of
computer training for employees (HRM)
• Supplier Quality management System
• Strong supply Chain management and CRM , GIS
Unilever Dunkin’ Brands Inc Nestlé
2014Core competencies analysis │main players
CoreCompetency
Difficult for imitation?Baskin Robins is known for its taste and variety. It
coordinates its marketing strategies (31 days, 31
flavors) with its production system (more
than 1000 flavors, and inspection on global
facilities) and slogan & Trade Marks.
Well-recognized brand produces super-premium ice cream (luxury and simplicity).
Position in high social-class people and use the finest ingredients with stringent
production system and other information system to control
the best quality.
Focus on Natural and eco-friendly ingredients match
the changing customers taste. Full time R&D
department catch up the trend of creating new flavors
but natural & healthy. Its inventory turnover is faster
than other competitors, which means it can sell them
to get cash as long as it’s needed.
Relevance? Breadth of application?
2014
Generic competitive strategies │main players
Generic Strategies
Siz
e o
f M
ark
et
Differentiation Cost Leadership Focus
Large
Small
T5: Focus Differentiation
Type 1: Cost Leadership—Low CostType 2: Cost Leadership—Best ValueType 3: DifferentiationType 4: Focus—Low CostType 5: Focus—Best Value
T3: Differentiation
2014
Trends in the industry
• Trends towards natural ingredients (no additive/preservative claims)• Ice-cream with lactose are refused because of suffering diabetes• More growth in diet-specific ice creams can be expected
Flavors grow up
Ice cream as a snack
Focus on Ingredients / Healthy Ice Cream
• Willing to try new flavor• Coffee is an on-trend flavor
2014
Conclusion
Although main players in this industry are in the same group of competitors (High price/quality and global level) , they create different core competencies and take different strategies according to their own business functions.
According to the basis of strategy management, strategies have to be future-oriented which means it requires consideration of both the external and internal factors influencing the firm.
In this presentation, Ben & Jerry’s and Baskin Robbins adapt the trends and follow them with its own competency. However, Häagen-Dazs doesn’t response to the changing of customers’ needs or environment obviously.
Therefore, in my opinion, in the following years, Ben and Jerry’s and Baskin Robbins will play better than Haagen-Dazs in ice cream industry.
Ice Cream
Industry
Lin Shang-Hsien
THANK YOU FOR YOUR ATTENTION &
Merry Christmas!