Dippin’ Dots external environment:
Rivalry:
Dippin' Dots had to face a large number of rivalries in the marketplace as the new entrants. Example: Mini Melts and Frosty Bits who contrived the same kind of ice cream in the same way as Mr. Jones unique Freezing technology
Buyers’ power:
The buying power is low due to locations. The 5 oz. cup for $5.00 is sold where consumers spend more money. Example: Malls, amusement parks, fairs, water parks, and festivals worldwide versus the grocery stores.
Threat of new entrants:
The threat of new entrants is high due to loss of patent – his competition and disenfranchised former employees can copy his product. Example: The license for the pattern was purchased after he had sold 800 Dippin’ Dots. Others caught on to the frenzy about the product and started their own business. It was taken to court, but he had lost the rights to the patten.
Suppliers’ power:
The suppliers’ power is high due to the special equipment needed to store product in addition to storing with dry ice. Example: The product integrity and consistency of the ice cream had to be served at 10 to 20 degrees below zero. A retail store would have to have special storage and serving freezers that were equipped for such low temperatures.
Substitutes’ threat:
The threat of substitutes is high because of the many different types of frozen desserts, various ice creams, sherbet etc. Example: Consumers can also buy substitutes at grocery stores where the product isn’t sold.
I chose my examples because the competition is everywhere. The examples from the case are still relevant today to me. Because being in business means competition and threats. You need to have a solid strategic plan that will allow you to be competitive in the market. This will help you when competitors are entering into the same market. You will be ready for the changes that