Jackie Hunter Dr. Herring Jerry & Ben Case 1994. Analyze Ben & Jerry's competitive environment using the Five Force Framework; i.e., for each of the five forces, state whether the threat or the power of that force is high, medium, or low, and explain why.
Threat of new entrants is high. There are several reasons why the threat of new entrants is high. One is due to the fact that Dreyer's is one of Ben & Jerry current distributors. Dreyer's could decide to backward vertically integrate into the production of superpremium ice cream, and that would be a threat. There is also, Edy's Manufactured by Dreyer's who produce half of Ben & Jerry's output.
Just recently Dreyer's received a huge cash flow from Nestle giving them an increase in competitive.
Threat of substitutes is high. Though out the industry there were a number of reasons why the substitutes were high.
English: Ben Greenfield and Jerry Cohen, founders ...
A pint of Ben & Jerry's ice cream
English: Ben & Jerry's branch at United Square Mal...The fact that customers are choosing ice cream industry that included ordinary, premium and superpremium products. The super premium ice cream and the frozen yogurt are highly competitive today.
Intensity of rivalry is high. The rivalry is high because there are very few major competitors in the industry that are capturing the same market. Ben & Jerry is faced with the increase competition from Haagen-Dazs, who are producing and expanding their selection of flavors. Haagen-Dazs also started a price war by reducing its prices and offering a variety of promotion and discounts. The strongest competitor is Haagen-Dazs, company Inc. and forty-two percent of the market and others including Colombo, Dannon, Healthy choice, Simple Pleasures, ÃÂâ°lan, & Frusen.
Power of suppliers is high. Due to the facts that Ben & Jerry has chosen suppliers that don't use any type of drugs in their supplies this cause the supplier to be limited.