Case 34: Dippin’ Dots Ice Cream and Coffee? 1) What elements in the external environment might affect Dippin’ Dots’ strategy? * The threat of new entrants into the industry creates more competition. * The power of the suppliers and buyers. As the present competition and potential new competition in the “frozen desserts” segment, have a major effect externally. * There are already substitutes to the Dippin’ Dots’ products, but there is still threat of new substitutes. * Intense rivalry is among Dippin’ Dots’; there are many imitators of this product. * Due to the market prices, the economy has a great impact on sales. ) What internal resources does Dippin’ Dots have that might help it support its competitive strategy? * A Unique Value Chain * Professional business connection with McDonalds. * The human intellectual knowledge was what separated Dippin’ Dots’ from others. * Jones was a microbiologist, * R&D is one major key in the Dippin’ Dots’ market, after all that’s how Mr. Jones started. * Example Mr. Jones developed the “microencapsulating”. * Entrepreneurial leadership was how Dippin’ Dots’ was created, and have leaded them to a creative mindset. * One of the 500 fastest growing companies, ranked #4 on the Entrepreneur magazine’s 2004 list. Total quality management lead to the quality of products and processes that Dippin’ Dots’ creates. 3) What is Dippin’ Dots’ competitive strategy, and what is the basis of its competitive advantage? * Total Quality Management: * The quality standards are maintained throughout the organization. * The overall product is a competitive strategy in itself. * Procedures, processes and resources needed to implement quality management, and are determined by the quality of the product, the satisfaction of the customer, cost analysis, revenue, and management performance. The Growth and Expansion * Interest is increasing for Dippin’ Dots’, and other entrepreneurs contacted Jones about opening up stores to sell. * Dippin’ Dots’ has grown into a multimillion dollar company gaining more dealers. * Franchise Dippin’ Dots’. 4) How has an entrepreneurial strategy and the management of innovation helped Dippin’ Dots establish its competitive edge? What challenges remain for Curt Jones? * Entrepreneurial Strategy * Family Business Model * Adaptive new entry * Ability to begin franchises, and get their names out there. * Management Innovations Incremental innovations through the development of new ways to make Dippin’ Dots’ even more of a threat. * Sustainability to be able to continue to grow their business. * Curt Jones got a patent for public disclosure of the invention. * Challenges for MR. Jones * There is always going to be completion that could impact the company, especially their popularity. * Advertising can be an issue, there is a lack of it in the market, and is only marketed in certain areas. * Finding was to continue to make Dippin’ Dots’ rare and difficult to imitate, because so many frozen dessert companies are trying to come close to imitate the ice cream dots.