Read this case study analysis on Momor Magda, an ice cream organization, and learn about their strategies, expansion plans, and future growth opportunities. Find out how they use cost leadership and differentiation strategies to increase sales and profitability.
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Running head: CASE STUDY ANALYSIS CASE STUDY ANALYSIS Name of the Student Name of the University Author Note
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1CASE STUDY ANALYSIS Table of Contents Introduction....................................................................................................................2 Usage of different strategies by Momor Magda............................................................2 Expansion of Momor Magda in Australia......................................................................4 Conclusion......................................................................................................................6 References......................................................................................................................7
2CASE STUDY ANALYSIS Introduction Momor Magda is an organization which was established by Angela Hafstorm and some of her close friends. The organization had developed its position in the industry with the help of its high quality and innovative products which are offered to the customers. Angela Hafstorm was an entrepreneur who had started the operations of the organization with the help of suggestions provided by her brother and proper levels of market research as well. The operations of the factory of ice cream organization had started with the factory in the year 2011. The production which had started in the new factory was highly overwhelming in nature (Kaya 2015). Usage of different strategies by Momor Magda The cost leadership based strategy has been implemented by the organization in order to increase the customer base and reach based on the customers. The products that are sold by the organization are priced in such a manner so that the products are able to offer maximum levels of value. Cost leadership strategy is implemented by organizations when they aim at providing the best products at lowest prices. This strategy is implemented by Momor Magda in order to increase the levels of sales and revenues (Block et al. 2015). The broad differentiation based strategy is implemented by an organization in such a manner so that the highest levels of quality is offered to customers irrespective of the prices. The strategy related to differentiation is considered to be effective for providing the best quality to customers who are not concerned about the prices. The business activities which have been performed by Momor Magda had become quite successful within four years of its operations. The products that are offered by the organization are made with the help of natural ingredients that are free from additives. The production process is based on the usage of Swedish strawberries and cookie dough (Zehir, Can and Karaboga 2015).
3CASE STUDY ANALYSIS The ingredients are also sourced in such a manner which is based on the needs and demands of the consumers. The quality of products is given highest levels of importance in the production process of the organization. Different aspects that are a part of the production process implemented by the organization mainly include, traditional, high quality, unique and luxurious. The taste of ice cream offered by the organization is also improved with the help of proper and high quality based ingredients. The supply related process which is developed for the production of high quality ice cream is quite expensive and is able to affect the prices as well (Zollo, Minoja and Coda 2018). The premium ice cream based products that are offered in the industry are high in demand and the differentiation strategy is considered to be highly effective in nature. The different flavours which are offered to the customers with the production of Swedish ice cream mainly include, vanilla, strawberry, pecan and liquorice. The organization has been able to face its competitors in the industry with the help of the quality of products that are offered by the organization. The major competitor of Momor Magda in the ice cream industry is Unilever. The differentiation based strategy implemented by the organization is thereby considered to be effective for increasing the profitability levels and revenues in the industry (Linton and Kask 2017). The strategies which have been implemented by Momor Magda have been effective in enhancing the levels of profitability. The branding based activities that have been developed by the organization are also based on the broad levels of differentiation in the industry. The stable business operations of Momor Magda have been affected in a huge manner by the pricing policies and quality maintenance based activities. The strategies have thereby proved to be effective for the operations of the organization in the industry (Linton and Kask 2017).
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4CASE STUDY ANALYSIS Expansion of Momor Magda in Australia Momor Magda has been able to maintain effective levels of profitability in the industry with the help of products and innovative approaches as well. The organization however, needs to be develop new strategies which can prove to be useful for the future operations in the highly competitive ice cream industry of Australia. The profitability and revenuesoftheorganizationcanbeincreasedinaneffectivemannerbyproper implementation of new strategies (Semuel, Siagian and Octavia 2017). The three new strategies which can be implemented by the organization in order to enhance its future operations are as follows, Social media can be used in an efficient manner in order to maintain the levels of profitability by communicating with the customers. Angela has used social media in the past in order to manage the relationships that are developed with the customers. The organization needs to improve the communication which is done with the help of social media so that it is able to understand the demands and needs of consumers. The experiments which have been conducted by the organization with the help of its innovative products can be communicated to the customerswith thehelp of propersocialmediaactivities(Rakthin, Calantone and Wang 2016). The social media based platform will thereby prove to be effective for increasing the customer base of the organization. The innovative approach which has been taken by the organization regarding different products can be maintained in order to maintain the sustainable operations in the competitive industry (McAlister et al. 2016). The promotional and branding based activities need to be developed by the organization in such a manner which will be helpful in the future operations. The organization needs to improve the branding based activities in order to
5CASE STUDY ANALYSIS increase the revenues in the industry. Proper promotions can be considered to be effective in order to increase the reach of products and the awareness as well. Promotions and advertising can be helpful for increasing levels of awareness based on the products and variety that are offered to the consumers (Cacciolatti and Lee 2016). Promotion is considered to be an effective method of increasing the profitability levels of the organization and ensuring the future operations as well. The organization will be able to expand its operations in Australiawiththehelpofpromotionsthataremadethroughdifferent mediums. The ice cream based industry of Australia will be helpful in developing the revenue levels of the organization (Bayraktar et al. 2017). The distribution facilities of the organization can be improved in order to provide the products to consumers in different areas within a shorter period of time. The development of proper supply chain and distribution can be helpful for the organization to increase the revenue levels in the ice cream industry of Australia. The organization will be able to operate in Australia in a profitable manner with the help of proper distribution. The organization can increase its reach in the local outlets with the help of a strong distribution based network (Cacciolatti and Lee 2016). The distribution network will be able to provide effective levels of opportunities to the organization in order to increase the revenues and increase its customer base in the market of Australia. The pricing of the products offered by Momor Magda are affected by distribution network. The development of a retail network is considered to be important for the ways by which the organization is able to provide the products to the customers in Australian ice cream industry according to their needs and demands (Rakthin, Calantone and Wang 2016).
6CASE STUDY ANALYSIS Conclusion The report can be concluded by stating that the organization which is mentioned in the case study, Momor Magda has been able to operate in the industry in a profitable manner. The profitability levels of the organization can be increased in the future with the help of proper implementation of strategies. Momor Magda will be able to expand its operations in Australia with the help of three different strategies that are related to increasing the promotional activities, using social media and enhancing the distribution based network as well. These strategies will be helpful for the organization to increase the levels of revenues in the ice cream industry of Australia.
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7CASE STUDY ANALYSIS References Bayraktar, C.A., Hancerliogullari, G., Cetinguc, B. and Calisir, F., 2017. Competitive strategies, innovation, and firm performance: an empirical study in a developing economy environment.Technology Analysis & Strategic Management,29(1), pp.38-52. Block, J.H., Kohn, K., Miller, D. and Ullrich, K., 2015. Necessity entrepreneurship and competitive strategy.Small Business Economics,44(1), pp.37-54. Cacciolatti,L.andLee,S.H.,2016.Revisitingtherelationshipbetweenmarketing capabilities and firm performance: The moderating role of market orientation, marketing strategy and organisational power.Journal of Business Research,69(12), pp.5597-5610. Kaya,N.,2015.Corporateentrepreneurship,genericcompetitivestrategies,andfirm performanceinsmallandmedium-sizedenterprises.Procedia-SocialandBehavioral Sciences,207, pp.662-668. Linton, G. and Kask, J., 2017. Configurations of entrepreneurial orientation and competitive strategy for high performance.Journal of Business Research,70, pp.168-176. McAlister, L., Srinivasan, R., Jindal, N. and Cannella, A.A., 2016. Advertising effectiveness: the moderating effect of firm strategy.Journal of Marketing Research,53(2), pp.207-224. Rakthin, S., Calantone, R.J. and Wang, J.F., 2016. Managing market intelligence: The comparativeroleofabsorptivecapacityandmarketorientation.JournalofBusiness Research,69(12), pp.5569-5577. Semuel, H., Siagian, H. and Octavia, S., 2017. The effect of leadership and innovation on differentiationstrategyandcompanyperformance.Procedia-SocialandBehavioral Sciences,237, pp.1152-1159.
8CASE STUDY ANALYSIS Zehir, C., Can, E. and Karaboga, T., 2015. Linking entrepreneurial orientation to firm performance: the role of differentiation strategy and innovation performance.Procedia- Social and Behavioral Sciences,210, pp.358-367. Zollo, M., Minoja, M. and Coda, V., 2018. Toward an integrated theory of strategy.Strategic Management Journal,39(6), pp.1753-1778.