preview

Ice-Fili Swot Analysis

Better Essays

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 dealing with their competitors. Ice-Fili’s short-term goals are: To remain competitive within the ice cream market and to maintain their status as market share leader. The long-term goals are: To gain market share over competitors such as Nestle …show more content…

Gaining a greater market share would allow Ice-Fili the opportunity to integrate forward and sell their products directly to customers. They could maybe even compete with Baskin-Robbins and Ben and Jerry’s in the franchised restaurant business. Franchising is relatively cheap for the franchisor and is a definite possibility for Ice-Fili in the future.
Plan B
With increasing competition from domestic and foreign competitors more drastic plans may have to be put into play. The ice cream industry as a whole has total sales of half a billion dollars a year. Ice-Fili, the dominant player in the industry, has only $25 million of it, which translates to a total of 5% market share, which is shrinking. The reason why the dominant player commands such a small percentage of the market is because there are over 300 companies of varying sizes competing for their share. To survive in such an environment a company needs more than one distinctive competency. In the case of Ice-Fili, they do have excellent production capabilities, but they lack proper research and development, they have little activity in marketing and little more in sales, a distribution system that is inefficient, and a lack of an experienced management team to employ these capabilities. Therefore, combining their distinctive competency of production with the distinctive competencies of another company may be the logical and mutually beneficial option. There are

Get Access