Question: STRATEGIC MANAGEMENT ANSWER ALL QUESTIONS CASE STUDY 1 A Kenyan leading ice cream manufacturer dairy land ice cream has rolled out its strategic plan to

STRATEGIC MANAGEMENT

ANSWER ALL QUESTIONS

CASE STUDY 1

A Kenyan leading ice cream manufacturer dairy land ice cream has rolled out its strategic plan to expand its operations and to increase the range of their products. The company has based its expansion plant on a steady growth of demand of their range of ice cream good economic prospects for Kenya economy and improving business prospects in East Africa in general.

Dairy land ice cream decided to expand their operations in Kenya and move on to Uganda and Tanzania. The firm planned to spend over ksh 60 million to introduce new branches of ice cream in to Kenyan market as well as expansion into the other to east African countries. The firm planned to spend more money in the construction of infrastructure, establishment of facilities of factory space, cold storage facilities and refrigerated vehicle. The firm also planned to assist their main outlets the supermarket to take more products and to assist them in advertising and introduction new brands. The main outlet of dairy land ice cream are the leading supermarkets in Kenya, Uchumi, Nakumatt, Tusker Matresses and Ukwala supermarkets.

Dairy land has also introduced new flavours ranging to 40 different varieties. This was aimed at increasing both the market share and market. Dairy ice cream faces a stiff competition from imported ice cream especially from South Africa and great Britain.

Dairy land ice cream will have to improve their customer service to win but also in the extended east Africa community. Dairy land will have to use product differentiation as a strategy to ward off stiff competition and to maintain their lead in the market.

i. On what grounds did dairy land ice cream base their expansion plans.

ii. Explain the reasons other than the ones stated that have made the firm contemplate on moving to the neighbouring countries of Uganda and Tanzania?

iii. How can dairy land ice cream assist their main outlets the supermarket to increase their sales.

iv. Why is the firm planning to introduce new brands into the Kenyan market.

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