Section/# Bluebonnet Case Analysis In seeking to answer which of the four scenarios provides the company with the best alternative, it is the understanding of this particular student that the last option, option number four, has the most relevance and potential to increase the profitability and success that Bluebonnet has thus far experienced within the market. However, as with any informed decision, stating that one particular option is the best among others is not sufficient. As such, the following analysis will engage the reader with a discussion and consideration of why option number four is the most relevant; alongside why the other options are not.
Accordingly, it is the hope of this author that the reader will gain a more informed understanding with respect to Bluebonnet’s approach to global demand and the means by which decisions regarding this should be predicated. Firstly, before measuring any other metrics, it is necessary to understand and appreciate the fact that Bluebonnet has succeeded within the market as a direct result of the fact that it is differentiated from the competition. One of the most powerful means by which Bluebonnet differentiates itself has to do with the immediacy to which its products reach the market.
Unlike other ice cream manufacturers such as Breyers and/or Ben & Jerry’s, Bluebonnet does not use any types of preservatives as a function of preserving the product on its way to market. The underlying rationale behind this has to do with the fact that these preservatives have a negative impact with respect to the quality taste that Bluebonnet prides itself upon. Moreover, instead of deep freezing its products as another alternative to preserving them in transit, Bluebonnet has established shipping locations that are within one days derive from the consumer markets that they service.
By maintaining a fleet of trucks and drivers that are dedicated to delivering Bluebonnet’s products to the stores directly, the quality and flavor of the ice cream that Bluebonnet produces stands directly apart from those of the competition. Likewise, the strength of this business model is ultimately what has propelled Bluebonnet to such a runaway level of success. Although it is true that it does not dominate the market within the United States, its market share and consumer loyalty has assisted the firm in growing and developing to a degree and extent that other creameries are envious. The first option is unacceptable due to the fact that it encourages Bluebonnet to recognize the potential for profitability and growth that they might have by serving and international consumer base; however, no action on this particular realization is denoted.
Ultimately, a 25% increase in profitability within a calendar year is an extraordinarily high level of growth that would not only benefit the profits of the firm but would promote its overall scope and reach; not to mention potential new product developments that might seek to engage in the future.
As such, the business manager that is faced with a potential for 25% increase, with relatively low investment costs, would be foolish not to consider this as a “once-in-a-lifetime” opportunity and seek to integrate with it in all haste. Likewise, both options two and three are unacceptable; due to the fact that they would encourage Bluebonnet to violate the very business model that has generated such a resounding degree that domestically.
Even though it is possible that Bluebonnet could continue to engage profitability within international markets by changing its “no preservatives” approach to packing and product distribution, the stakeholders within Asia and elsewhere would likely be frustrated with the fact that they are paying a premium for a product that is not even similar to the product that is manufactured within the United States; or the product that they have fallen in love with on one of their travels. Even though it could be potentially profitable to engage with either of these two options, Bluebonnet could likely find itself in a difficult position.
What is meant by this has to do with the fact that Bluebonnet could very well eventually be faced with a situation in which to divergent product lines exist alongside one another and only have similarity with respect to their product name and/or corporate umbrella. As such, seeking to create a level of product uniformity and universality is ultimately beneficial with respect to the long-term profitability and competitiveness that Bluebonnet seeks to engage as compared to other creameries. Finally, reaching option number four, this analysis considers it to be the most effective scenario and promoting a further level of profitability and success for bluebonnets.
However, even within this particular scenario, drawbacks to exist. For instance, if Bluebonnet decides to engage in building cooperative agreements and corporate creameries within major distribution centers of the People’s Republic of China (PRC), it will automatically forgo the potential of engaging with either the European or African markets. However, as the case study did not indicate what overall potential for profitability these markets represented, it is safe to assume that they were significantly lower; at least as compared to the 25% potential increased that engaging with the Chinese market provided.
Ultimately, with limited resources, Limited personnel, and limited time, Bluebonnet must engage with those opportunities that are the most cost-effective and portend the greatest degree of profitable increase. For this very reason, it is the understanding of this particular student that option or fulfill each of these determinants. Furthermore, seeking to adulterate the approach to the market that Bluebonnet has created so painstakingly would effectively decrease the overall sales potential that the firm can seek to achieve throughout Asia; and throughout the rest of the world that matter.
Ultimately, this business model has proven effective within the United States and even though the United States market cannot be equally compared to each and every global market, the level of universality and approach with respect to seeking to promote the quality and taste of the product is enough to encourage Bluebonnet to continue to engage in a similar manner; regardless of what market they are seeking to engage. Whereas the analysis has thus far indicated that Bluebonnet would be doing itself the potential disservice if it changed its business model with regard to the Asian market, or with regard to expansion in general, an alternative approach that has not been listed above with respect to the four options regards performing a low-cost and relatively localized survey that would seek to engage consumer sentiment within China, Europe, and Africa – concerning the overall aversion to the use of preservatives.
By engaging in such a study, the levels of assumption that have thus far been represented would be dispelled and the stakeholders within Bluebonnet could more accurately determine whether or not it would be profitable and beneficial to create another product line that is destined for international export and includes preservatives in order to maintain freshness during shipment. If it is indeed true that consumer sentiment is opposed to this particular approach, Bluebonnet will still be in a position to engage with the market based upon option number four; discussed at length within the above analysis.
However, in the event that they would be satisfied with options to work three, it is possible that Bluebonnet could save a considerable amount of money and invest it elsewhere; while all the time seeking to meet the needs of the markets in question. As has been denoted throughout the study, there is no firm or absolute answer to such business decisions; instead, the decisions that are made are predicated based upon the individual needs of markets and the overall financial resources/time that is available to address these.