Ben And Jerry's Case Study

7229 Words 29 Pages
Register to read the introduction… According to figure 3.1, emerging economies’ share of world GDP is projected to increase to 55%, this shows the shift in global economic power from the developed to developing economies. As seen in figure 3.2, the E7’s (developing countries) aggregate GDP will be twice of G7.
With higher economic growth in emerging markets, middle class proportion rises. These countries are transforming from an investment and export led economy to a consumer-driven one. (Barton, 2013) Due to higher consumer demand, companies venture into emerging markets to capitalize on new opportunities.
Rapid economic growth in these countries would translate to potential investment opportunities for companies from developed economies. Investments in emerging economies bring about various advantages such as diversification and a thriving economic scene.
Global Power Shifts present an opportunity for Ben and Jerry’s to venture into emerging markets like india where increasing affluence results in 20% annual growth rate of India organized ice cream market. (Choudhary, 2012)
Low interest
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Instead, funds can be channelled into more vital areas like advertising. Though successful in using word of mouth marketing of their social responsibilities, they still fall behind Haagen Daz in terms of marketing and awareness campaigns. Committing to CSR thus becomes counterproductive when it reduces the availability of funds for other aspects.
Supply Chain
As part of their efforts to give back to society, Ben and Jerry’s only use milk and cream from family farmers of the St. Albans Cooperative Creamery in Vermont. (Ben & Jerry's, 2013)
As a result, there is high risk as a disturbance in the area can delay an entire product line. This would mean millions of dollars in revenue lost. Ben and Jerry’s stand on using only Vermont milk gives producers bargaining power.
By deciding on having production based exclusively in St. Albert, Vermont, Ben and Jerry’s has to export their ice cream to countries operating outside the US. Due to shipping fees and taxes, Ben and Jerry’s ice cream will be more expensive in other countries. Thus, Ben and Jerry’s competitive advantage is reduced.
Growth in the yogurt

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