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Ben & Jerry's Case Analisys

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Introduction

´╗┐Ben & Jerry?s Case Analysis Facing their first ever net income loss and experiencing a disconnect between company strategy, it is necessary to compare Ben & Jerry?s to Michael Porter?s ?Five Forces? model to obtain guidance and a clear perspective on what path their new CEO Robert Holland should take the company. Ben & Jerry?s operational effectiveness was not successful in that they were inefficient in managing operational activities. The high cost of distribution, significant delays in opening a new manufacturing plant with a $6.8 million write-down, producing the large chunk ice cream, and difficulty forecasting demand for ice cream flavors all contributed to the company?s first profit loss in 1994. ...read more.

Middle

Ben & Jerry?s have used a variety-based positioning strategy to pinpoint a specific customer base who are interested in the environment and are willing to pay a premium price for higher quality. Ben & Jerry?s disconnect with their growth strategies and equipment problems cost the company huge profits. Ben & Jerry?s was first known for their chunky rich superpremium ice cream. Developing too many flavors and product lines in a short period of time, caused Ben & Jerry?s to experience a complexity in their business that they were not able to manage. A trade-off should have arose and Ben & Jerry?s should have conducted more product research and tailored their company to handle the different products, equipment, and managing skills needed for such a huge expansion. ...read more.

Conclusion

Ben & Jerry?s, along with it?s new CEO, need to revisit their original strategy. Their inconsistencies to grow outside their original lines of ice cream have forced them to loose competitive advantage and caused profits to fall. Porter recommends in his ?WIS? report to refocus on the unique core of the company and realign their activities with that original vision, which Holland can implement in a modern way. Holland needs to continue to focus on the company?s unique eco-friendly strategy, restructure the distribution processes, cut costs, and focus attention on equipment and factory issues. Holland should also look to grow globally which will help maintain Ben & Jerry?s position and identity and continue to maintain a balance of achieving economic success and environmental responsibility. ...read more.

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