Compare and Contrast Cost leadership, Focus and Differentiation Strategy in Ice-Cream Market

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Management
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1MANAGEMENT
Table of Contents
Answer to Question 1......................................................................................................................2
Compare and Contrast Cost leadership, Focus and Differentiation Strategy that contributed
Towards Success in Ice-Cream Market.......................................................................................2
Answer to Question 2......................................................................................................................4
Recommendation of Three Strategies that could be adopted for Expansion in Australia...........4
References....................................................................................................................................7

2MANAGEMENT
Answer to Question 1
Compare and Contrast Cost leadership, Focus and Differentiation Strategy that
contributed Towards Success in Ice-Cream Market
In the competitive business environment, the different firms need to be increasingly agile
and adaptive to the situation which will increase their overall competitiveness. In the fast-moving
innovative era, there are different companies which face various challenges as to meet the
demands of the customers, suppliers along with the shareholders. There has been rising tension
among the companies as they are working hard to fulfil the needs and become superior in
comparison to the other competitors. Mormor Magda’s Ice-Cream Company faced such issues in
the competitive environment, and this affected their sales negatively.
With the help of Porter’s Generic Forces, this helps in determining the relative position
and profitability which is below or above the industry average. With the help of the
differentiation strategy, Mormor Magda's Ice-Cream Company tried to be unique in the industry
along with inclusion of dimensions which are used by the buyers. While selling the ice-cream,
the company decided to improvise on the branding and product to attract the customers towards
the product which are being sold by them (Abdolshah, Moghimi and Khatibi 2018). In the early
stage, Mormor Magda's Ice-Cream Company tried to focus on the manufacturing of the ice-
cream which is naturally made with locally sourced ingredients which are free from additives.
They added different flavours of mint, strawberry, salted caramel, popcorn, toffee along with
other components.
The distribution of Mormor Magda’s Ice-Cream Business takes place in various manners
which are depending on location. The production of ice-cream through locally produced