ice fili essay

Background (as of 2001) Russian ice cream market has become increasingly challenging with relatively stagnant growth and aggravating competition. Due to these challenges, Ice Fili, the top ice cream producer in Russia, has experienced 40% decrease in the production volume and 50% decrease in its market share for past 5 years. However, Ice Fili has been capitalizing neither the market potentials nor its competencies. Russian ice cream market is highly profitable with over twice the profit margins

  Ice-­‐Fili  Case  Study   Comm  491  –  Momo  Deretic   9:30am  Tuesday/Thursday   M a r t i n   M ,   R y a n   P ,   S o h y u n   P ,   D i e g o   S   Introduction From 1996 to 1998 Ice-Fili suffered from huge increases in costs that gradually ate at their margin at alarming rates. Even worse, from 1999 to 2001 they had a huge decrease in sales and got into liquidity problems. The economic situation for Fili seems to

Christian Vögtlin A Strategic Case Analysis of Ice-Fili Seminar paper Document Nr. V68229 http://www.grin.com/ ISBN 978-3-638-60696-7 9 783638 606967 Universität Konstanz Course: Strategic Management: Concepts and Cases “Ice-Fili” A Strategic Case Analysis Written by: Christian Vögtlin Table of Contents 1. 2. 2.1 2.2 2.4 3. 3.1 3.2 3.3 4. 5. 6. 7. 8. Introduction .......................................................................................................

technology, legal & political, cultural and demographics. The Russian ice cream industry was behind in equipment and technology use. Their production techniques, ingredients used, and packaging primarily. It was estimated that most Russian firms were 40 to 60 years behind the world’s technology level. Ice Fili alone invested millions of dollars to import new equipment. By the late 90’s 90% of the equipment used by Russian ice cream manufactures to produce and sell was imported, which created huge

1.Problem / Issue Identification: The Russian ice-cream market is not structurally attractivePorters 5 ForcesBargaining Power of Suppliers:-Not an issue-Commodities but big seasonal variations-Limited local sources of high quality butter-High availability of imported raw materials-Specialist equipment must be imported (but may be easy to copy?)Bargaining Power of Buyers:-consumers have low disposable income-distributors have power - they have many suppliers-Growth in supermarket sectors - may wield

Introduction Ice-Fili is currently competing in Russia’s ice cream industry. Although they have expanded to other products such as margarine and mayonnaise they will continue to focus on their core product line, which is ice cream. The reasoning behind this is that their ice cream production constitutes the majority of their profits and it is what Ice-Fili is most skilled at. The short-term and long-term corporate goals of Ice-Fili are relatively similar in that they both are concerned with

Case study 3: Competitive Advantages Ice-Fili: Ice cream market in Russia Here is a résumé of the Five forces model of the ice cream industry in Russia: Threat of new entrants High Threat of substitute High Bargaining power of supplier Low Bargaining power of customer High Rivalry among competitors High “What are the potential sources of competitive advantage in the Russian ice cream market?” How do customers buy? - Russians consume 2.5 kg of ice cream compared to the 16 kg in the

Ice-Fili case analysis 1. Please provide an in-depth five forces analysis to illustrate the competitive environment for Russia’s ice cream industry. How is it likely to evolve? Five forces analysis: 1) The bargaining power of suppliers * As some producers such as Ice-Fili wanted to keep their product’s quality level, they imported specific raw materials, but they didn’t have a problem in finding new suppliers. * As the technology of Russia was lagged behind Western’s, Ice cream

the Russian Ice Cream Market Although the Russian ice cream market may initially look attractive due to its consistent growth in ice cream production/demand in recent years, after evaluating the market through the five forces framework, it becomes clear that the market far from attractive. Since the open market economy was first introduced to Russia in 1991, ice cream producer competition has more than tripled in sized to 300 firms by 2002. Significant funding would be required for ice cream manufacturing/distribution

Ice-Fili Case Questions Threat of Substitution is high. Many other products are able to meet consumer needs for snacks, including beer, soda pop, chocolate, and other candies. Many of these other industries are far larger than the Russian ice cream industry and thus have greater access to resources and bigger marketing budgets. Rivalry Among Existing Competitors is low. International players have entered the market and other domestic producers are able to make some of the staple products produced