Ice-Fili Case Analysis - 1224 Words

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 producers needed to import most of their ice cream machines. The bargaining power of suppliers for raw materials is low, while for facilities is high. 2) The bargaining power of customers * There are various ice creams in Russia, so†¦show more content†¦* The Russian economy is discouraging foreign investments, but the producers needed that money to update technology, modernize infrastructure, develop marketing and packaging solutions, develop dealer and distributor networks and so on. * The Russian financial crisis of 1998 resulted in a financial collapse and devaluation of the ruble by 2/3. The domestic producers had to reduce their reliance on importe d materials and some foreign competitors exited the Russia market. 2) The fierce competition in Russia * Regional producers, who has a significant cost advantage and are more flexible To meet the market demand in regional areas, become more competitive. they accounted for about 30% of domestic market, a few regional even exhibited aggressive growth in Moscow and other metropolitan markets. * Foreign companies, such as Nestle, have a strong competitive advantage. Nestle has a long-term investment strategy, use local production and supplier to reduce cost, train and develop local staff who has a better understanding of the local market , and develop its own storage facilities, distribution and marketing network.. In addition, Nestle develop product that fit Russian taste and traditions. 3) The weakness of Ice-Fili * Cost disadvantage. High-price raw material, as well as the ice cream equipment, which has to import from other countries; high fixedShow MoreRelatedA Case Study of Ice-Fil i1715 Words   |  7 Pagesï » ¿ Summary The paper provides analysis of Ice-Fili, and the paper reveals that Ice-Fili is one of the important ice cream producers in Russia. However, the entrant of foreign ice cream producers such as Nestle has made Ice-Fili to face stiff competitions within the industry. Porter five analysis reveals that Ice-Fili has not been able to compete effectively with foreign companies because the company still relies on imported equipment and technology and traditional method of production, whichRead More ICE FILI FIVE FORCES1019 Words   |  5 Pagesï » ¿Ã‚   Ashley Springer Ice-Fili case analysis November 22, 2012 Through tough times in the Russian ice cream market; one company has one company has pulled their weight and maintained their position on top. 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Currently, the company is experiencing tough competition with Nestle, Baskin-Robbins and regional ice cream producers. Its loss in market share due to their poor quality decisions-making after Russia became an open marketing in 1992. Nestle took great advantage of Ice-Fili’s low reaction adjustment and is taking over their market. 1. Which segments of the general external environment, if anyRead MoreIce Fili Assignment6257 Words   |  26 PagesA Strategic Case Analysis of Ice-Fili Seminar paper Document Nr. V68229 http://www.grin.com/ ISBN 978-3-638-60696-7 9 783638 606967 Università ¤t Konstanz Course: Strategic Management: Concepts and Cases â€Å"Ice-Fili† A Strategic Case Analysis Written by: Christian Và ¶gtlin Table of Contents 1. 2. 2.1 2.2 2.4 3. 3.1 3.2 3.3 4. 5. 6. 7. 8. Introduction ..............................................................................................................- 1 External Analysis............Read MoreIce Fili Assignment6257 Words   |  26 PagesChristian Và ¶gtlin 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 Università ¤t Konstanz Course: Strategic Management: Concepts and Cases â€Å"Ice-Fili† A Strategic Case Analysis Written by: Christian Và ¶gtlin Table of Contents 1. 2. 2.1 2.2 2.4 3. 3.1 3.2 3.3 4. 5. 6. 7. 8. Introduction .......................................................................................................Read MoreIce Fili Case Study1180 Words   |  5 Pages1.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