Analysis Of Ben & Jerry's Best Interest

1732 Words Dec 2nd, 2015 7 Pages
Entering Japan
The Japanese market represents an avenue of growth for Ben & Jerry’s that it has not pursued yet. We outline the advantages and disadvantages of entering into the market and show Ben & Jerry’s best interest is to expand.

Advantages of Entering the Market
One of the biggest advantages of expanding is the potential growth. Japan has a $4.5 billion ice cream market, the second largest in the world behind the US. Considering the increase in dairy consumption occurring in Japan right now, a huge, untapped opportunity for us--one that Haagen-Dazs takes full advantage of. Their current sales of $300 million shows the possibility for large profits that we miss out on currently. Furthermore, successfully entering a foreign market shows the world that Ben & Jerry’s is a fierce global competitor.

We possess the resources to produce the ice cream. Currently, our factories operate at half capacity. This means that we already have the capacity to produce enough ice cream to send to Japan. The possibility of a 2% decrease in dairy tariffs in the near future, also puts our company in a more profitable position to enter the market.

An additional advantage in the Japanese market is the space for a differentiated product. No success occurred with Japanese manufacturer’s attempts to emulate the chunkiness of Ben & Jerry’s ice cream. A wide appeal for foreign products already exists in Japan, and our unique product gives us the means to occupy our own space in the market.…
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