Analysis of Internal Environment
Dippin’ Dots was founded by Curt Jones in 1988. Initially it became a family start-up business with the first CFO being his sister; together they started as small business in a vacant warehouse. Pretty soon after that they began appearing at stands at fairs and amusement parks. By 1991 it grew into a multimillion dollar company operational in 50 states and world-wide. Continuing this momentous progress, they began to make way in ice cream industry in 2000. Dippin’ Dots sustained success from 2000-2005 yet began to fall in the years following its path to accomplishment. It established its first franchise in 2000 and soared to be named ...view middle of the document...
Unfortunately he has the mid of a scientist ant not an operations manager which crippled the company. He could see the innovation in the product but could not transform that into revolutionizing the company forward.
* Curt Jones had significant expertise in Microbiology and Cryogenics. Before he founded Dippin’ Dots, he was a Bioengineer at ALLtech Inc.
* Another strength is from their unique product, ice cream in the form of BB sized pellets of flash frozen ice cream made in super cold temps (using liquid nitrogen), served in subzero temps.
* Curt Jones had no real experience as an operation manager so this lead to the absence in operation management.
* They faced inexperience in dealing with supermarket chains, packaging and distribution. Because Dippin’ Dots had an inadequate R&D department, that led to the lack of advancement.
* No improvement (Dot’s and Cream/ Dot Delicacies) and lack of diversification in different industries.
* Product had to be stored in specialize containers, thus could not be kept in household freezers, thus another failure of R&D to find a way for it to be kept in store freezers.
* Dippin’ Dots chose poor channels to market their product. Deficiency of marketing efficiency (not on TV commercials) only way people heard of Dippin’ Dots was by word of mouth in early 90s; early 2000s began putting in ads in Seventeen and Nickelodeon magazines.
* Another detrimental weakness was the lack of patent protection that would also competitors to make similar
Analysis of External Environment
* The fact that Dippin’ Dots appealed to the ages of 8-18 years old, means that they could continue to growth their brand successfully.
* By focusing their attention on the younger generation, they can focus more in R&D to help position themselves for the future.
* McDonalds was spending millions of dollars in advertising to promote Dippin’ Dots. The company could benefit from the network and channels McDonalds has get not only the Dippin’ Dots name across the world but show the world how good their brand of ice cream tastes.
* The overall threat to Dippin’ Dots is that the ice cream industry is on the decline.
* Customers moving towards healthier treats (reduced fats ice cream from Nestle’; light ice cream from Breyers)
* Competitors joining forces (Good Humor- Breyers Ice Cream = Unilever North American ice-cream brands)
* Ex: Freshly scooped ice cream at kiosk;
* Slab concept- blend premium ice cream with customer’s choice of toppings before serving it in cup
* Ex: Cold-stone Creamery
* Previous employees working with competitors to make similar brands of ice cream (Frosty Bites in 2000 and Mini Melts)
Porter’s Competitive Factors:
Threat of substitution: Dippin’ Dots is primarily a specialty ice cream company. If the industry shifted away from ice cream and ventured into...