INSTITUTE OF MANAGEMENT TECHNOLOGY, NAGPUR

Subject: Strategic Management – TERM IV

PGDM – 2nd Year (BATCH: 2020-22)

Faculty Members: Dr. Rajiv Joshi and Dr. S. Shyam

Roll No. 202032065 Name - Chitvan Daulani Section: D

Date: 11. 10. 2021 Time: 9.30 am - 10.00 am Full Marks: 10 TIME: 30 Minutes

Instructions / Note:

1. Please read the question carefully and understand your task well.
2. You are required to type your answer in the space given in the question paper / answer
sheets. Handwritten answer sheets will not be accepted for the evaluation.
3. Use your assumptions and judgement whenever necessary and explain it explicitly, if
required.
4. The answer sheet format is adaptive in nature.

Method: Application of Strategic Management Tools and Framework

Question 1 (10 Marks)

With regard to the Ice Cream Industry in Western part of India, which of the following
factors might qualify as possible forces capable of causing fundamental change in the
industry’s structure and competitive environment? Identify and briefly explain your stand on
this. Use necessary assumption and the existing knowledge, frameworks and mental models
of the industry analysis.

Start you answer in the next page in the given format. First identify Yes / No for each force /
factor. Followed by your brief explanation / why.

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ICE-CREAM INDUSTRY – Factors / Forces

Factor / Situation Factor Possible to Cause Fundamental Change and Brief

Explanation
1. Increasing sales of Yes
frozen yogurt as a new Your explanation:
customer preference / habit With respect to Ice Cream, Yoghurt is a close substitute as it
is also a dessert of choice for many. As evidenced in the
Porter’s 5 forces, the presence of a strong substitute greatly
impacts competition.
The consumer shift towards healthier yoghurt may not bode
well for the sugar rich ice cream industry. They would have
to find ways by introducing Zero Calorie Ice Cream & such.

2. The possibility of entry Yes

of a multinational firm in
the market (a leading
makers of ice cream
worldwide)
Your explanation:
A competitor is almost always a bad news. More so if the
competitor is an established player. But it has to be seen
whether it is disrupting the prevalent market or is it
expanding the market by targeting perhaps the ultra-premium
consumers.

3. Growing consumer Yes

interest in low-calorie and Your explanation:
low-fat ice cream products The fundamental structure may be affected as this is causing
a switching behavior to healthier options This could usher in
new players into the market who specialize in this.
The stronger players may be caught napping and their huge
commitment to the sugary ice cream is also harder to move
away from.

4. Growing consumer Yes

interest in sugar-free Your explanation:
desserts as alternatives With respect to Ice Cream, sugar free desserts are close
substitutes as it is also a dessert of choice for many. As
evidenced in the Porter’s 5 forces, the presence of a strong
substitute greatly impacts competition.
The consumer shift towards healthier yoghurt may not bode
well for the sugar rich ice cream industry. They would have
to find ways by introducing Zero Calorie Ice Cream & such.

5. Rising input prices No

(milk, sugar, and other ice Your explanation:
cream ingredients due to This may not cause structural sift in competition, as price
seasonal fluctuations) fluctuations of inputs are essentially market risks, ie, they
affect the whole market & all the players.

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 However, the larger players may well be less affected
because of they have better economies of scale.

6. A decision by Amul to Yes

slash down their prices of Your explanation:
the products by 20% Any competitor cutting down their prices would cause the
customers to shift to the cheaper products and give an
additional advantage to Amul as compared to other market
players.

7. A decision by Havmor
(one key player in the state
of Gujarat / Western India)
to increase the prices of
their products by 10%
8. A decision by Vadilal
Enterprises (one key player
in the state of Gujarat /
Western India) to add ten
new flavors to its product
line.
9. A decision by a big
Private Equity (PE) firm to
buy huge stake in one of
the industry players
10. Stringent
manufacturing norms
imposed by the govt. due to
COVID 19 pandemic
No
Your explanation:
Havmor ‘s decision is not likely to disrupt the premium
segment much as it is only a small increase
Yes
Your explanation:
This is likely going to expand the market to some degree
depending on the success
No
Your explanation:
Acquisitions may not directly affect competition
Yes
Your explanation:
Compliance is done better by the cash rich brands. The
smaller & the more local players may lag behind

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