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.

Was this article helpful?

0 0
Financial End Game

Financial End Game

How to profit from the global crisis and make big bucks big time! The current global financial crisis has its roots embedded in the collapse of the subprime markets in the United States. As at October 2007 there was an estimated loss on the subprime market of approximately 250 billion. If you want to come out on top, you have come to the right place.

Get My Free Ebook

Post a comment