Another top priority was to focus on Ben & Jerry’s unique activities as a key success factor to gain competitive advantage over their competitors. For example, their corporate strategy to integrate product quality with social responsibility is a key factor in the successful operation of the company. 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.
Ben & Jerry’s has had a consistent fit with their environmental image, which has allowed them to donate more profits every year to different causes. Ben & Jerry’s have had very few compliance issues, which benefits business by minimizing operational costs and gaining competitive advantage over competitors through their strict environmental controls. Other strategic consistencies are the support they give to Vermont farming and agriculture. This strategy has provided a better product that has attracted customers and allowed Ben & Jerry’s to command a higher price, satisfying the company’s mission of corporate success and environmental commitment.
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. Holland also needs extensive research and development to adjust to the changing customer preferences such as low-fat, low calorie, organic lines of ice cream and frozen yogurt. Ben & Jerry’s also should look into developing more manufacturing centers outside of Vermont to cut distribution costs and increase production volume by correcting equipment and plant issues. Lastly, Holland should continue to open new franchises of scoop shops to increase product reach with consumers and gain competitive advantage.
