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? The competitive set of the ice cream industry is highly fragmented and very diverse. International brands such as Nestlé have through their size‚ position and also advertising expenses managed to capture market share. The local‚ much smaller producers on the other hand have the majority of the Russian population on their side. In addition their organizational
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company was privatised and rechristened “Ice Fili”. Anatoliy Shamanov‚ an expert in the technical processes essential in the frozen food industry‚ joined the company in 1968. After six years of service he decided to further his expertise serving in a variety of other roles elsewhere in the frozen foods industry. He later retuned as CEO in 1988 and was inspirational in leading the company through the vast changes that ensued. Ice Fili are Russia’s top ice cream producer so one could forgive Shamanov
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ICE FILI CASE 1) Is Russia’s ice cream industry attractive? Yes‚ it is. Russia is one of the largest nations in the world and‚ as such‚ holds promising market share potential due to its sheer size in geographic‚ demographic and economic terms. Russians love ice cream‚ even in the subzero winter climate. Despite decreased market share due to recent increased consumption of beer‚ soda and confectionary products; the Russian ice cream industry is attractive due to its lower entry barriers
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How attractive is the Russian ice cream market? How is it likely to evolve? Market attractiveness refer to all the characteristics that contribute to the success of organizations within the market. Profitability is one and Exhibit 9 suggests profit margins for retailers and distributors are about 30% - 50%‚ and producers’ is about 15%. This is high in the Russian food industry where‚ the profitability in the confectionary industry was only 6% - 8%. The russian ice cream industry had about 300 companies
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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
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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
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1. How structurally attractive is the Russian ice cream market? How is it likely to evolve? Analyzing from using five force model we can conclude that the structurally attractiveness of Russian ice cream market is quite low due to several reasons. Firstly‚ the crisis in 1998 had greatly reduced the consumption ability of ice cream market and increased the imported ingredients for producers. Secondly‚ Centralize planning system that is used in Russia caused the Russian managers to have little
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Global Strategy Spring 2015 CASE ASSIGNMENT QUESTIONS Ice-Fili Please prepare the following questions for the in-class case discussion (not to be turned in) 1. 2. 3. What quantitative indicators can you find in the case that could capture the changing attractiveness of the Russian ice cream market between 1996 and 2001? What explains this change in market attractiveness over these years? What‚ in your opinion‚ should the Russian incumbent ice-cream makers consider to enhance the market attractiveness
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As Russia’s largest domestic ice cream producer‚ they had held onto their market leadership for many years. However‚ increasing competition from foreign companies‚ along with the emergence of regional producers of ice cream led to Ice-Fili’s market share erosion in the recent years. Porter’s five forces model was the primary method to analyze Ice-Fili’s industry and its competitiveness in the industry. Segmentation analysis was used for further study of the ice cream industry in Russia. The analysis
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Is Ice-Fili’s strategic position have to change ? 1 Structure - Ice-Fili evolve in a big market and is success key is the fact that its products were always available for consumers from the creation of the firm. Figures - founded in 1937 - more than $25 million in sales in 2002 - largest ice cream market shareholder before Nestle Root issue : Increase of substitutes and low switching costs. 2 Moderate SUPPLIERS POWER - Little number in ingredients production
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