1. What is Dippin’ Dots’ competitive strategy?

2.  What role did entrepreneurial strategy and the management of innovation play in establishing Dippin’ Dots’ initial competitive edge?

Dippin’ Dots was a specialty ice-cream company. In 1998, Dippin’ Dots founder Curt Jones had patented his idea to flash freeze liquid cream and sell the product to franchisees throughout the world. Dippin’ Dots, “the ice-cream of future,” were tiny round beads of ice cream that were created at super-cold temperatures and served in a soufflé cup with a spoon. Made at the company’s production facility in Paducah, Kentucky, Dippin’ Dots’ unique frozen products are distributed in all 50 states and 11 countries.

The frozen dairy industry had been occupied by family-owned businesses like Dippin’ Dots, full-line dairies, and a couple of big international companies that focused on only one sales region. Recent years had been marked by an increase in the production and sale of a variety of frozen desserts. Most novelty ice creams could be found grouped together in a supermarket freezer case, small freezers in convenience stores, and in franchise locations; or on carts, kiosks, or trucks at summer time events. Dippin’ Dots founder Curt Jones had developed a franchising system to try to grow the business, and, in 2005, Dippin’ Dots ranked number two as a top new franchise opportunity.

But by 2009, Dippin’ Dots faced bankruptcy due to increased competition from companies such as Cold Stone Creamery in the “scoop shop” ice cream market, from direct competitors MolliCoolz and Ittibitz whose product was available in the grocery freezer, as well as from knock-offs like Mini Melts in vending machines. With such fierce competition, Dippin’ Dots needed to adapt to customers’ changing needs and invest in product and service innovation to survive. In 2010, Jones had created two new products: frozen fresh-brewed coffee dots, and a low-fat frozen-beaded dessert alternative to ice cream, but this wasn’t enough to counter increased operating costs and plummeting sales. Jones had to file for Chapter 11 bankruptcy in November 2011.

In 2012 Dippin’ Dots was acquired with private capital, and emerged from bankruptcy with new management. New president Scott Fischer said he looked forward to “the company’s growth potential in a global market,” and remained committed to Dippin’ Dots reclaiming its status as “the ice cream of the future.” However, by 2017 Dippin’ Dots had been using that tag line for over 28 years, and even though the company promoted the low cost of entry and flexibility of its franchising options, franchise growth was slow. New product lines and promotional events had had some success, distribution partnerships with the likes of Doc Popcorn had yielded some results, so sales were up, but despite this the future of the company remained uncertain. Would these efforts be effective at growing the business, could the company expand organically instead of through partnership and co-branding contracts, or was this entrepreneurial journey over?