Attaining The Next Orbit Dilemmas of a Family Managed Business - Natural Ice Cream Case Study Analysis
Weaknesses:
One of the weakness of the Natural ice cream is that it is facing a number of challenges while upscaling its operations. A number of intergeneration conflicts between Raghunandan and his sons is one of the major weaknesses of the company. These intergeneration conflicts might affect the operations of the company, which would ultimatelycasue negative effects on its profitability. Alongside this, these intergeneration conflicts creatednumerous concerns about the sustainability of the company, in future. The stiff competition from the local and global players, such as:Amul and Kwality-Walls is another weakness of the company. The competitorsreinvented themselves with larger portfolios of flavors and combinations, which incorporated fresh and dried fruits in ice cream. The waste management challenge posed another weakness to the company, which raised a question on the efficiency of the resources’ utilization. The low survival rate of the family owned business is considered to be another threat for the company. The existing suppliers are not able to cater the increasing need of the company,thereforean availability of the right quality and quantity of raw material are another challenges for the company.
Opportunities:
One of the opportunity is that number of upscaling options are available to the company that enables it to scale up from a small-scale, artisan ice cream brand to a large-scale pan-India and global brand. In order to upscale its operations, the company has an opportunity of expanding its production capacity either in Mumbai or at another location. Another opportunity is that the company would upscale its marketing operations by setting up distribution channels and selling ice cream in grocery stores, supermarkets, kiosks and hotels or selling throughvendors on bicycles, without compromising on the consumers’ experiences. Another opportunity is that the company would expand its operations through the public financing. In aion to this, the company would introduce itscurrent product portfolio in the new markets of India and beyond India.
Threats:
One of the major threat is that the company is facing a stiff competition from its competitors. The local and global players reinvented themselves with larger portfolios of flavors and combinations that incorporated fresh and dried fruits in ice cream. Furthermore, the local players are selling its products through a number of vendors on bicycles and supermarkets that posed a threat to reduce the profitability and consumer base of the company. Moreover, the changes in the customers’ taste and preferences is another threat to the company. The diet conscious consumers are choosing low calories and sugar free desserts. The entrance of coffee chains and cafes, such as: Cafe Coffee Day and Starbucks competed with Natural's on customers’ experiences of a "hang out" platform. The entrance of the coffee chain might hurt the consumer base of the company.
Recommendation:
The company is using unique selling proposition (USP) through two innovations i.e. product innovation and market innovation. In product innovation, the recommend strategy that would allow the company to take the business to the next orbit is that the company should move towards the backward integration. This would allow the company to expand its production capacity without compromising on the taste, quality and core values of making ice cream, with only high quality and natural ingredients. In marketing innovation, it isimportant to increase their geographic marketing network to tap the unmet demand in Tier Il and Tier Ill cities in India. Since ice cream consumption was lower in East and South India,”so the entering in that regions would allow Natural's to enjoy the first mover advantage. In addition to this, the company would also overcome the problem of waste management by bringing new flavor from the usage of waste coconut and would test with the small number of customers. This would allow the company to maintain its competitive edge and consumer base among its players as well as opening new doors of growth and profitability to the company......................................
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