Strategic Analysis of Ben & Jerry’s Homemade, Inc.
Can B&J Serve a Double Scoop of Being Green and Making Green?

ESM 210 Professor Delmas Final Paper November 21, 2000 Alex Tuttle Vicky Krikelas

1

BEN & JERRY’S ICE CREAM Table of Contents INTRODUCTION……………………………………………………………………………. MARKET DESCRIPTION………………………………………………………………….. FIRM DESCRIPTION………………………………………………………………………. THE MISSION STATEMENT……………………………………………………………… 1 1 1 2

GENERAL CORPORATE STRATEGY…………………………………………………… 2 CORPORATE ENVIRONMENTAL STRATEGY………………………………………… 4 STRATEGY ANALYSIS……………………………………………………………………... 8 Five Forces Model of Competition…………………………………………………….…8 SWOT Analysis…………………………………………………………………………..11 Key Success Factors……………………………………………………………………..11
The general corporate strategy can be characterized as a focused or market niche strategy based primarily on product differentiation and quality production. Although focused differentiation strategies target a narrow buyer segment, this strategy helps Ben & Jerry’s gain a strong competitive advantage as it can offer consumers something they perceive is appealingly different from rival competitors—innovative super-premium ice cream flavors that taste better and consist of all natural, high quality ingredients. In addition to differentiating its product from other ice cream competitors, Ben & Jerry’s general strategy combines several other key components, including fostering a company image of social activism, creating brand loyalty, franchising the company to aid economic growth, and developing creative advertising campaigns. Product Differentiation One means of gaining a competitive advantage is through the use of a differentiation strategy to provide a better product that buyers believe is worth the premium price (Thompson and Strickland, 1998). Since higher quality ice cream generally costs more than the economy and regular types of ice cream, Ben and Jerry’s has incorporated product differentiation in its general corporate strategy in order to command a higher price. The use of all-natural, high quality 5

ingredients and the innovative flavors of Ben & Jerry’s ice cream illustrates the strategic use of product differentiation to