Ice Fili Assignment

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Christian Vögtlin 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 Universität Konstanz Course: Strategic Management: Concepts and Cases “Ice-Fili” A Strategic Case Analysis Written by: Christian Vögtlin 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..................................................................................................... - 1 The Russian ice cream industry ............................................................................ - 1…show more content…
This meant for the Russian companies big structural changes. The companies had to invest significantly if they wanted to compete with the foreign firms who entered the Russian market now. The second economic crash was in 1998. Russia slithered into a financial crisis when the country was not able to comply with its debt payments. The ruble was devaluated by two-thirds and left the people with almost no money. The low purchasing power of the consumers forced many foreign companies to reduce their imports dramatically and the domestic competitors to rely on the Russian ice -1- cream products with their natural ingredients. But as the imports started to drop, the export of ice cream increased. Already one year after the crisis, in 1999, the exports exceeded the imports by 3,200 tons compared to 13,000 tons of import surplus in 1998. The capacity of the Russian ice cream market is growing. During the Soviet time, the ice cream production increased steadily to 468,000 tons in 1990. After the dissolution the production fell to a minimum of 223,000 tons in 1996 due to the privatization with its transition to market-based production conditions and the imports of foreign firms. After the financial crisis in 1998 foreign imports got too expensive. The competitors from other countries left Russia or, as Nestlé for example, produced the cheaper Russian ice cream in their own Russian factories. This led to a steady

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