Strategies Adopted by Momor Magda in the Ice Cream Market

This document discusses the strategies of cost leadership, differentiation, and focus adopted by Momor Magda in the ice cream market and how they contributed to the company's success. It also explores three strategies that Momor Magda could adopt to expand their business in Australia.

Running head: BUSINESS STRATEGY
Business Strategy
Name of the Student
Name of the University
Author Note

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1. Compare and contrast the following strategies adopted by Momor Magda (Cost-
leadership,Focus and differentiation strategy) that contributed to their success in
the ice-cream market.
In order to gain success in the ice cream market, Angela Hafstorm has implemented the
Poster’s Generic strategies. The porter’s generic strategies describethe process by which the
company pursues competitive advantage across its selected market scope. The three generic
strategy of porter’s includes cost leadership, differentiation and focus. The cost leadership
strategies involve winning the market share by offering products or services to the cost-
conscious consumers (Newton et al. 2018). This strategy enables the owners of the organization
to achieve competitive advantages over its competitors by offering product or service at a much
lower price in the target market segmentation or at least lower price to the value ratio. The cost
leadership strategy enables the owner to offer lower price to the consumers and still be able to
achieve profitability along with high return on investment (Bahadir, Bharadwajand
Srivastava2015). For this, the organization must be able to lower its investment costs compared
to its market competitors. Angela Hafstorm, the owner of Momor Magda has always focused on
the quality of the ice creamoffered by the company to the consumers and hence, instead of
cutting the investment cost that is necessary to produce high quality ice creams, she had focused
on cutting out the promotional costs by conducting social media campaigning. Social media
campaigning can be considered to be the most inexpensive way of promoting business in an
effective manner. Promoting business through blogs and popular social media platforms not only
requires a highly limited investment cost but also enables the owner to stay connected with the
target consumers of the brand. Not only this, social media platforms have also enabled Hafstorm

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to understand the basic needs of the consumers and thus maintain and enhance the consumer
loyalty.
The differentiationstrategy involves making the products or services offered to the
consumers different and unique from the existing competitors in certain ways so that it can
attract the consumers and gain competitive advantage over its competitors (Barkema et al. 2015).
The factor on which this strategy off Porter’s depends includes the features, durability and
functionability of the business. In order to implement thisstrategy in her business the three steps
taken by Angela Hafstorm includes good research, development and innovation, ability to deliver
high quality product or services and effective marketing and sale in order to make the market
understand the benefits offered by the differentiated products. In order to differentiate it products
from the other manufacturers of ice creams, Moor Magda have innovated dairy free ice cream so
that consumers who are allergic to dairy products and avoid the same can consume it. Not only
this, the company is also offering the health conscious consumers with health ice cream options
like fruit-based and yoghurt ice creams in order to enhance the consumer base along with gaining
competitive advantage.
When it comes to the focus strategy, companies adopting this strategy concentrate
specifically on a niche market. For this the owner needs to understand the dynamic of the market
as well as its unique needs and n hat basis he or she develops uniquely low cost or well specified
products for the target consumers. For Momor Magda, the focus of Angel Hafstorm was on the
ice cream market of Sweden. In order to gain the attention of the consumers, Hafstorm has
created ice cream form naturalproducts and have used the term “Darproducerad” which implies
local and additive free products.

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2. Discuss three strategies that Momor Magda could adopt to expand their business in
Australia. Justify your answer.
The three business strategies that Momor Magda should implement in order to expand its
business in the global market includes integrated supply chain management strategy, market
penetration strategy and social media based promotional strategy. Integrated supply chain
management is considered as one of the major Supply Chain strategy, which helps an
organization to engage the external stakeholders in supply chain so that it can take necessary
steps to get competitive advantage in its target market (Bull et al., 2016). The integration of
supply management has been drawn from industrial organization economics for deriving internal
operations that possess the potential to understand the competitive intensity to understand the
attractiveness of the industry on the basis of its profitability.
The supply chain integrity includes examining the supply chain strategy of competitors,
scope of the substitute supply, power of the suppliers, and preference of the buyers.
Implementing this strategy will help Angela to understand the degree of competition that will be
face by the Momor Magda Company from the already existing ice cream manufacturing
organizations in the Australian dairy industry. The degree of managing supplier as part of
production on the other hand, will make the owner to make the consumer base of the mentioned
industry more inclined towards their product since the company will be able to provide better
quality in optimal price. (Chen et al. 2018). Along with that, if pastries and chocolates are found
to be gaining more priorities to the consumers, strategies for incorporating unique flavors and
texture in the ice cream to gain back the consumers can be made. Selection of proper suppliers
will help Momor Magda to use powerful suppliers of the Australian dairy industry while using

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power of the buyers. It will also beneficial for the management of Momor Magda to maintain its
consumer loyalty.
While the integrated supply chain will help Momor magma to resolve the competiveness,
threats and barriers of the Australian supplier market, the market penetration with unique product
will help the company to utilize uniqueness of new products considering external opportunities
so that it use consumer interest for enhancing its brand value and consumer loyalty. According to
researchers, one of the major advantages of using market penetration includes its designing,
packaging and analysis of consumer psychology (Zhao et al. 2016). For this, any one of the
board members of the Momor Manda can take help from product customization strategy. The
management of the mentioned organization will be able to use its strength of the product better.
The risk eliminated during market analysis will enable Angela to address the consumer demand
and expectation. The trends found during market analysis will help the management to design
production cycle to choose the most profitable product design. Finally, this strategic tool will
enable the management of the mentioned company to develop effective product choice as well as
strategies for achieving market share.
The social media marketing strategy can be considered as the final step for the Momor
Magda Company to expand its business across Australia. This strategy will help Angela as well
as other board members to determine the pricing strategy, the product range that will be offering,
the social media pages and blogs that will be beneficial for the company for attracting maximum
number of the consumers and finally which promotional technique is to be adopted to enhance
brand awareness. According to researchers, pricing of a product triggers its first impression
towards its consumers. Selecting proper online platform to attract the consumers and enhance

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brand awareness is also crucial sine brand awareness and consumer base is directly proportional
to the revenue of the company (Mathookoand Ogutu2015).

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