Background

At the start of the 1980s, SIA was an unknown producer of ice-cream on the retailing market. The company was better known in the catering industry where SIA had nation-wide distribution. Their concept was built on high quality ice-cream made from dairy cream as well as educating the catering industry on ice-cream, selling their knowledge through 'ice-cream schools'. This competitive advantage was erased when the competitors started to sell cheaper ice-cream (not based on dairy cream) and began to teach the catering industry about ice-cream for free. On the retailing market, SIA's penetration was limited and the company faced a strategic choice; should they compete in the non-dairy segment or strengthen their position in the dairy cream segment? The latter was decided and they went looking for a partner. Movenpick was eventually chosen.

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