Ice Filli

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The problem that Ice-Fili was stemming from the rising level of competitiveness in a growing industry in Russia. Currently the companys position is favorable given the fact that it has a higher production capacity than its rivals. And it also has the lead over internation competitors such as Nestle and Baskin Robbins in terms of market share. However the competition position was not sustainable because of the rising level of competitive threat, not only in the form of manufactuerers upgrading their equipment and technology but also in the form of regional producers taking advantage of their small sizes and low costs. Therefore Ice Fili which was a mid-sized company did not have the same degree of flexibility and was at a disadvantage when it came to competing for distributors shelf space. The market place was changing, and as a result the management of the company was in need of critical actions in terms of formulating strategies for future growth expansion. Issues

* Stronger relationships with distributors
* The Russian ice-cream market is not structurally attractive * Porters 5 Forces
* Bargaining Power of Suppliers is not an issue
* Commodities
* -High availability of imported raw materials
* Specialist equipment must be imported
* Bargaining Power of Buyers:-consumers have low disposable income-distributors have power * they have many suppliers-Growth in supermarket sectors may yield more power in the future * cafes and restaurants can dictate which ice-cream consumers will choose-accessibility is the issue here * consumers dont have access to all products

* no strong brands-high seasonality
* overcapacity-Ice cream margins decreased from 30-40% to 15-20% between 1998 and 2000 * Dollar price per kilo has dropped from 2.66 to 1
* high competition 300 players a large increase from only 87 in the mid 1990 * Barriers to Entry-very low-low capital requirements as meat packers convert existing...
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