...Indeed Dippin Dots, in fact, stumbled on a haul once their patent was denied. This spread out competition from many firms such as IttiBitz, Mollicoolz, and Mini Melts and Frosty Bits, that is the company that with success challenged the Dippin' Dots patent. With the failure of obtaining the lock on this patent a lot of competition is probably going on. Another downside is that Dippin Dots is costly. For what you’d spend on a high-end tub of frozen dessert you can obtain Dippin Dots for. With redoubled competition and poor price, Dippin Dots must alter its business arrange by either lowering costs within the face of competition or manufacturing a lot of merchandise to extend revenue. I believe these forces of competition will still be relevant...
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...Teaching Notes – Dippin’ Dots Ice Cream, as of October, 2004 Case Uses & Objectives This case can be used to augment discussions of strategic analysis, specifically both internal and external environmental analysis (Chapters 2 & 3 in Dess, Lumpkin & Eisner); and strategic formulation, specifically business level strategy (Chapter 5), with an additional focus on strategic implementation, specifically entrepreneurial development (Chapters 12 & 13). The case is written in a style that overviews the situation but intentionally avoids guiding students through any analytical framework or specific application question. In so doing, it provides the instructor with the latitude to adjust class discussion and thereby accommodate the abilities of a wide-range of students. Specifically, the instructor can invite students to reason through a situation where uncertainty exists and speculation may be required. In terms of environmental analysis, this case connects a discussion of external environmental forces and Porter’s five-force model, and how such forces affect the opportunities for growth in an industry (referencing concepts covered in Chapter 2). In terms of internal analysis of the firm, (referencing Chapter 3), the value-chain and resource-based VRIN analysis provides a case for how distribution challenges across the value-chain activities could affect value. The stakeholder perspective can also be analyzed using the balanced scorecard. As a business-level strategy case, (referencing...
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...Dippin’ Dots external environment: Rivalry: Dippin' Dots had to face a large number of rivalries in the marketplace as the new entrants. Example: Mini Melts and Frosty Bits who contrived the same kind of ice cream in the same way as Mr. Jones unique Freezing technology Buyers’ power: The buying power is low due to locations. The 5 oz. cup for $5.00 is sold where consumers spend more money. Example: Malls, amusement parks, fairs, water parks, and festivals worldwide versus the grocery stores. Threat of new entrants: The threat of new entrants is high due to loss of patent – his competition and disenfranchised former employees can copy his product. Example: The license for the pattern was purchased after he had sold 800 Dippin’ Dots. Others caught on to the frenzy about the product and started their own business. It was taken to court, but he had lost the rights to the patten. Suppliers’ power: The suppliers’ power is high due to the special equipment needed to store product in addition to storing with dry ice. Example: The product integrity and consistency of the ice cream had to be served at 10 to 20 degrees below zero. A retail store would have to have special storage and serving freezers that were equipped for such low temperatures. Substitutes’ threat: The threat of substitutes is high because of the many different types of frozen desserts, various ice creams, sherbet etc. Example: Consumers can also buy substitutes at grocery stores where the product isn’t...
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...Executive Summary: Dippin Dots is known as the ice cream of the future, by offering frozen desert items in the shape of tiny beads or dots that are extremely cold and filled with delicious ice cream flavors. Dippin Dots Inc. is a franchise that is continuing to grow rapidly, while experiencing a lot of national success. This is accomplished by maintaining high quality standards, top notch customer service, and by offering new and exciting products. Dippin Dots offers a very unique/innovative and fun product that none of its competitors can match, thus allowing the franchise to distinguish itself and have an advantage over the competition. The franchise offers a large variety of all their unique items ranging from shakes to fat free and sugar free flavors. By offering a large variety the franchise will be able to attract many different kinds of customers ranging from small children to health conscious customers. After careful examination of the New River Valley, it was determined that Dippin Dots would become very successful in the Radford University area. Move over coffee cafes and make room for the ice cream shops, they are becoming the new social gathering spot for kids, families and college students. There are many advantages of this site location, such as high visibility, high pedestrian traffic, and no direct competition. Promoting Dippin Dots across campus will incorporate their brand image, by using promotional techniques including mailing flyers to all college...
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...expertness in cryogenics. Dippin Dots ice cream were small circular shaped beads of ice cream that were made at supercold temperatures, provided at subzero temperature in a soufflé cup. Dippin Dots Ice Cream was detected in places like shopping malls, amusement parks, water parks, festivals globally, when enfranchisement was based in 2000. PESTEL means Political, Economical, Social, Technological, Environmental and Legal, which assists an industry, discover its large ecological affairs outwardly. Porter’s five forces and PESTEL analysis are better to assess the external forces of the Ice Cream Company. Technological component for Dippin dots ice cream was that Mr. Jones devised a unique kind of freezers to shun the ice cream to dissolve rapidly, by which Dippin Dots was slightly exaggerated because the freezer used at home were unable to grasp the ice cream. Mr. Jones had previously sold its Ice cream to more than 800 consumers earlier than even presenting the apparent through which Dippin Dots was released of its law suit alongside its creation being duplicate thus the apparent consequential in being affirmed unacceptable. Dippin’ Dots had to countenance quick increase in cost due to the rough and competitory ice cream marketplace as well as attractive set prices therefore the ice cream cost to increase which affected the company economically which faced decrease in sales and loosing its customers since the prices increased. Dippin Dots had to face a large number...
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...Case Study 34: Dippin’ Dots Dippin’ Dots, “Ice Cream of the Future,” has been around for nearly 25 years. The company has had some major obstacles to overcome throughout the years. When Dippin’ Dots first launched, it truly stood behind its name, “Ice Cream of the Future.” The founder of Dippin’ Dots came up with a process known as flash freeze liquid cream. He was able to reinvent a product that people of all ages had either heard of or tried. The strategies used were, developing “futuristic” ice cream, targeting people ages 8 to 18, continuing to grow the company by use of franchises and selling the product through amusement parks, fairs, malls and the use of vending machines. He used celebrities to promote product, tried a joint venture with McDonald’s, and introduced healthier options to be able to target selling product in schools. The threat of new entrants is high due to loss of patent; competition along with disenfranchised former employees can copy the product. Power of suppliers is high due to special equipment needed to store product in addition to storing with dry ice. International shipping was also difficult due to equipment needed to store and ship product. The buyer power is low due to locations where Dippin’ Dots are sold are places in where consumers typically spend more money. Therefore the 5 oz cup for $5.00 is not an over-priced product. Consumers realize in these environments...
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...Dippin’ Dots Case Analysis Business Policy-DeVry University COMPANY NAME, WEBSITE, and INDUSTRY Dippin’ Dots is going to be the chosen case for this case analysis. The Dippin’ Dots website is https://www.dippindots.com. As stated in the book it is a company that is in the ice cream manufacturing and scoop shop retailing business (Dess, 2012). This company has made many growth spurts, even throughout the test it was put in. BACKGROUND AND HISTORY Dippin’ Dots is a company that mainly sells ice cream, but the business has recently implemented coffee dots made from rich quality Arabian beans which could be eaten as frozen ice cream dots, it can blend with Frappe beads to make Dippin’ Dot Frappes, or heated up and drank as a hot beverage. It started out by founder Curt Jones in Grand Chain, IL in 1988. By 1990 he launched his first production facility headquarters in Paducah Kentucky. Curt Jones was working as a microbiologist which had helped him come up with the idea to use liquid nitrogen for the sole purpose of freezing things very rapidly. He used his skills from his job and applied them to making Dippin’ Dots ice cream. With this information Curt Jones implemented not only one store, but since opening he has launched several franchise locations worldwide today, along with Dippin’ Dot set ups in many amusement theme parks, festivals, and fairs. Chad Wilson, the present controller and franchising director helped Dippin’ Dots hit its next spurt of growth by putting in...
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...SWOT Analysis Strengths: The first strength of the Dippin’ Dots is their unique and lucrative way of presenting ice cream to consumers by combining traditional ice cream features with new technology. The firm uses a different technique that calls flash freezing and it makes them enable to differentiate themselves in the competitive business environment. That unique and innovative way of production and presentation also makes the brand more attractive to its customers. Furthermore, the innovative flash-freezing technique that Dippin’ Dots adopted has a great impact on the market. It is also stated in the case that their products have more flavor than regular ice cream and this feature of the product also gives the company much more strength in the market. They are also able to differentiate themselves with their different distribution channels such as malls, theme parks, cinemas and water parks. By doing using these distribution channels they can easily bring their products to mass markets. In addition, the advertising strategy such as hiring Hollywood firm to place its ice cream in the background of television and movie scenes creates a strength and gives the firm advantages over its competitors. Threats: The major threat to Dippin Dots’ business in the market is the existence of powerful brand name competitors such as Unilever and Nestle SA. According to data estimated by Bloomberg Industry Unilever controls roughly one-fifth of the $85 billion worldwide ice cream...
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...Dippin’ Dots (Strategy Implementation) Question to be addressed: Using the relevant analytical tools conduct an evaluation of the Company’s Internal Capabilities. Matching these capabilities against the key success factors of the industry give your opinion on the Company’s competitive position. In an industry awash with competitors, Dippin‟ Dots (DD) is reliant upon particular technological features in the manufacturing, production and distribution of the flash ice-cream product. This is what fundamentally sets it apart from its rivals. Indeed, the industry-life cycle is generally considered to be at the maturity stage, however DD‟s intellectual capital rests upon the ability of its scientific people to continue to create a product that is following a “breakaway positioning” strategy whereby there is a concerted effort to bring to market goods and services that are perceived by customers as somehow being different (Dess, 2006: 178). Seen in this light, DD‟s cryogenically produced products can be categorised as occupying a particular growth stage of the industry life-cycle, within a wider market that is at the point of maturity. The firm is therefore following a differentiation strategy, which concomitant elements of a focussed strategy, as is evidenced by a segmentation strategy which specifically concentrates on the 8-18 year old demographic. The company hopes to capture a loyal niche following that will gravitate to its products because of the perceived...
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