Strategies Adopted by Momor Magda in the Ice Cream Market

Running head: BUSINESS STRATEGY
Business Strategy
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Author Note

1BUSINESS STRATEGY
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

2BUSINESS STRATEGY
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.