Ben and Jerry's Homemade Ice Cream Inc.: A Period of Transition
Autor: Adnan • April 18, 2018 • 1,130 Words (5 Pages) • 889 Views
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Strategy constitutes of a set of distinctive, integrative choices that have to be made throughout the value chain to create competitive advantage. To capture these choices, the company must identify the advantage it wants (cost or differentiation), the scope over which the advantage will be realized and its interaction with the external environment.
Ben & Jerry’s is at a transition stage where they need a change in its strategy. Thus, Bob Holland needs to first decide whether it wants to compete in the same markets or if he wants to change its target market. This is because there is a gradual shift in the taste and preferences of the consumers. Then, he needs to decide on the products he would be offering, that is, continue to offer the same products to a new market segment or create new products for the existing market. For this, it has to conduct a complete market study to test the sustainability of its strategy. The company also has to decide whether it wants to continue competing in the premium segment on the basis of differentiation or wants to compete on the basis of cost advantage.
Also, Bob cannot look at any particular function of the company in isolation to initiate the change process. It will have to consider all the functions of the company as an integrated whole to decide the future course of action, which would be greatly based on the resources and capabilities that the organization currently possesses.
However, whatever course of action Bob Holland decides to take, he must ensure that his strategy is:
- Externally Consistent: It is able to exploit the opportunities posed by the external environment as well as counter external threats.
- Internally Consistent: The decisions taken throughout the value chain fit together well to form a coherent whole.
- Dynamically Consistent: It must be capable of anticipating the future and influencing its competitor’s moves.
Also, irrespective of the strategy adopted, there has to be a sincere effort for its execution, in order to ensure success.
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