Strategic Analysis of Ben and Jerry's Homeade Inc.
Strategic Analysis of Ben and Jerry's Homeade Inc.
INTRODUCTION
Ben & Jerry’s is an innovative leader in the super premium ice cream industry. The company blends a commitment to provide all natural, high quality ice cream with a commitment towards social activism and environmental responsibility. This report will analyze both the company’s environmental strategy and general corporate strategy in order to identify the consistencies and disparities (if any) between these strategies and to determine whether a “green” company such as Ben & Jerry’s can sustain a competitive advantage. We will also discuss the potential impacts on the company’s strategic vision in light of the recent acquisition by Unilever. Our analysis will focus on examining the strengths and weaknesses of the environmental and general corporate strategies in light of its internal resources and external competitive and non-market forces.
MARKET DESCRIPTION
Ben & Jerry’s operates in the highly competitive super premium ice cream, frozen yogurt and sorbet business. Super premium ice cream is generally characterized by a greater richness and density than other kinds of ice cream and commands a relatively higher price. The company’s two primary competitors include Haagen-Dazs (a member of the Ice Cream Partners organization) and Dreyer’s Grand Ice Cream Company, which introduced its Godiva and Dreamery super premium ice cream line in the fall of 1999. Other significant competitors include Healthy Choice, Nestle and Starbucks (SEC Report, 1999).
FIRM DESCRIPTION
Ben & Jerry's Homemade, Inc., the Vermont-based manufacturer of super-premium ice cream, frozen yogurt and sorbet, was founded in 1978 in a renovated gas station in Burlington, Vermont, by childhood friends Ben Cohen and Jerry Greenfield with a modest $12,000 investment. The company is now a leading ice cream manufacturing company known worldwide for its innovative flavors and all-natural ingredients made from fresh Vermont milk and cream (www.benjerry.com).
Manufacturing of all Ben & Jerry’s frozen dessert products occurs in the company’s three plants located in Vermont. The company distributes ice cream, low fat ice cream, frozen yogurt, sorbet and novelty products nationwide as well as in selected foreign countries in supermarkets, grocery stores, convenience stores, franchised Ben & Jerry's scoop shops, restaurants and other venues. Outside of Vermont, the products are distributed primarily through Dreyer’s and other independent regional ice cream distributors.
Unilever, a multinational food and personal products company recently acquired Ben & Jerry’s in spring 2000. The Ben & Jerry's Board of Directors approved...