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. Established in 1937; Ice-Fili has survived the change in government, financial hard times, and the ever growing competition from international companies. However, given these events their market share, which was once dominated by Ice-Fili, has been significantly reduced. In fact the Harvard Business School’s 2005 revision of the Ice-Fili case study states that in just a few years the market share decreased by a half billion dollars. This downfall has posed the CEO of Ice-Fili, Anatoliy Shamanov, with many questions. Included amongst…show more content… Quality also leads to the decision of where to purchase from. Ice- Fili is a good choice for quality because it is one of their goals for service.
As a choice for an easy and inexpensive snack ice cream can be easily substituted.
Switching costs between alternatives are very low because the consumer can service many products using what they already own. Also the end consumer can easily choose to purchase yogurt, soda, chocolates, or other candies.
Rivalry is high in the Russian ice cream industry. Many companies exist to sell a highly undifferentiated product. Imported brand are not only sold by the Russian market, but also welcomed by government. The Ice-Fili product is quickly perishable. These foreign companies produce the product differently by adding preservatives which in the long run lowers costs due to extended shelf life. Also the technology is more recent and more innovative in the foreign companies, which, lets them have the top of the line products that Ice-Fili is incapable of producing without putting more money into new equipment. The companies that compete with Ice-Fili have another advantage because they choose to produce and market for a wider customer base. They sell the ice cream at more places than just the kiosks that Ice-Fili sells at, because they produce more than ice cream. Lastly, the ice cream industry has no growth. In recent years they actually have a shrinking