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Dippin' Dots Case Analysis CASE ANALYSIS - Dippin' Dots Ice Cream I. Key issues and problems Soaring operating costs and plummeting sales Competition...

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Dippin' Dots Case Analysis CASE ANALYSIS – Dippin’ Dots Ice Cream   I. Key issues and problems     • Soaring operating costs and plummeting sales     • Competition from copycat products (loss of patent)     • International shipping storage problems     • Retail storage problems – convenience factor     • Lack of new growth opportunities in product lines   II. Analysis of external environment         General environment     • Technological – better storage system at retail locations,     • Economic – operating costs rising     • Sociocultural – innovations such as slab concept, independent scoop shop, etc surpassed Dippin’ Dots ice cream of  the future innovation     • Legal – patent infringement lawsuit was dismissed, allowing competition to sell similar products     • Demographic – older generation still likes Dippin’ Dots, as well as introducing newer generations to the product         Industry environment     • Potential entrants – high threat due to loss of patent; product can be copied by competition and former employees     • Suppliers – high input costs to flash freeze ice cream gives suppliers medium power because of unique freezing  process     • Buyers – low buyer power because they pay a high premium for the product and are more dedicated fans     • Substitutes – high power of substitutes because there are many substitutes – large variety of frozen desserts such  as other ice cream brands, frozen custard, sherbets, gelato, etc.     • Industry competitors/rivalry – high rivalry from family owned businesses, full line dairies, and large international  companies         Competitor environment     • There are two giants dominating U.S. ice-cream industry: Nestle and Unilever PLC of London and Rotterdam,  along with about 500 small businesses     • Challenge for producers is to woo customers away from competitors and sustain a loyal fan base by continuing to  innovate Dippin ' Dots Inc . is a privately owned company that produces an ice-cream snack called Dippin ' Dots which they call as the Ice Cream of the Future . Dippin ' Dots are small spheres of ice cream
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that are the produced by flash-freezing ice cream mix in liquid nitrogen . Aside from producing small beads of ice cream that are fun to eat , the flash freezing process also made Dippin ' Dots richer and fresher tasting than regular ice cream . Dippin ' Dots was founded in 1987 by microbiologist and inventor of Dippin ' Dots - Curt Jones . Mr . Jones ' experience with cryogenics led him to experiment with flash freezing an old family recipe for ice cream creating small spheres of ice cream which became Dippin ' Dots . Curt Jones remains the current chairman of the company while its current President is Tom Leonard . According to The Encyclopedia of Company Histories , the company had estimated sales of 34M in 2002 and has 160 employees Individual servings of Dippin ' Dots are sold at franchised outlets Dippin ' Dots franchises are located in shopping malls , amusement parks and the like . Dippin ' Dots franchises could be found in eleven countries in North and South America , Australia and Asia . Individual servings are also sold via specialized vending machines in various locations Starting 2002 , Dippin ' Dots became an offering in select McDonald 's branches in California . Today , Dippin ' Dots is the third largest ice- cream franchise in the USA , placing behind Baskin Robbins and Dairy Queen Dippin ' Dots can 't be sold in retail outlets such as groceries and supermarkets to be consumed at home like regular ice cream because the product requires temperatures below -20 ?F which is below normal temperatures for standard freezers . Dippin ' Dots are currently produced in two facilities , one in Paducah Kentucky and another in South Korea that serves the Asia-Pacific markets SWOT ANALYSIS STRENGTHS - The primary strength of the company lies in the novelty of the product . Dippin ' Dots is a novel way of delivering ice cream that is unlike any other in the market . Additionally , the manufacturing process gives another value proposition by the way it produces richer and better tasting ice cream than the competition WEAKNESSES - The weakness of the company is the fact that their ice cream needs specialized equipment to be stored . This greatly limits their distribution options as not every home or retail outlet has freezers that go down to -20 ?F . This weakness is apparent in the fact that Dippin ' Dots cannot be sold in tubs like regular ice cream , thus limiting the market penetration of the product as it is limited to be sold via franchised outlets OPPORTUNITIES - One opportunity for Dippin ' Dots is to expand its franchising operations into the European Market . Currently , there are still no franchises operating in Europe .
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Dippin ' Dots was founded in 1987 by microbiologist and inventor of Dippin ' Dots Curt Jones. It is a ice-cream pallor and has been predicted to be the Ice-Cream of
future. The stores of this...

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