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 Industry …show more content…
After the financial crisis in 1998 and the decrease of imported ice cream, the market offered good opportunities for new domestic entrants. They often already owned the facilities where they produced for example frozen food and so it was relatively easy to change to ice cream production. With the needed assets they already possessed they did not face economies of scale and high initial costs as barrier to entry. And the new regional producers try to compete with the product differentiation by selling cheaper “no name” brands. The threat of entry from international producers could also rise again, if the Russian economy seems to be stable again. Now it will be look at the threat of rivalry for Ice-Fili coming from established competitors in the industry. Ice-Fili’s fiercest competitors were international firms who had higher technology standards and better know-how than the Russian companies. But after the economic crisis in 1998 many of them, such as Ben & Jerry’s, left the Russian market. Those who stayed invested in domestic production facilities and produced directly in Russia, as for example Unilever, Baskin-Robbins and Nestlé. By 2001 Unilever had almost withdrawn from the Russian ice cream market due to lack of experience to deal specially with ice cream and the poor distribution of its products. Baskin-Robbins is still present. It has focused on the restaurant and café segment and offers its brands at exceptionally high prices. As
In Ice-Fili’s case, they used multiple suppliers for the same raw materials and had a steady stream of offers from new suppliers. Equipment manufacturers had more bargaining power; however, as more domestic producers begin manufacturing that equipment, their bargaining power erodes. Bargaining Power of Buyers is moderate. Their buyers are resellers as well as consumers. Switching costs for buyers are low, resellers don’t have any particular brand loyalty, and consumers can purchase the same style of ice cream (such as Lakomka) from multiple different companies. That being said, a sizeable portion of the market prefers domestically produced ice cream that does not contain preservatives. Another portion of the market is willing to pay much more than the average price of ice cream for what they view as a premium product and experience. Threat of New Entrants is also moderate to low. While there are new companies joining the market, fixed costs are high, including the need to import equipment for production. Many of the companies that have entered the market are companies who already had cold storage facilities that were underutilized. As this excess capacity phases out, the number of new
On July 2, 1990, Vanilla Ice announced his new hip-hop single “Ice Ice Baby,” which was also set to be released on his debut album To the Extreme. The opening bass line for his single sounds astonishingly identical to the bass line found in the collaborative work of David Bowie and Queen, titled “Under Pressure,” which was released just under nine years prior on October 26, 1981. Vanilla Ice had not requested to exploit the rights before producing or releasing the song. and by proclaiming that he did the songwriting and production for the rest of the song, Vanilla Ice made himself directly liable for the infringement. The legal counsels of both David Bowie and Queen worked quickly to form a legal team in order sue Vanilla Ice for copyright
To place a reader in the mind of a character, the author must create a scenario which will appeal to the senses, and keep readers intrigued. The technique of building imagery can successfully transform the world around the reader, and connect them to the story. One Mile of Ice by Hugh Garner uses many imagery-building techniques to place readers in the mind of a man on the verge of death. In this story, Hugh Garner tells the tale of two brother-in-laws, Ralph and Pete, who venture off into town, accompanied by mare and sleigh, to get presents for the children for Christmas. However, their journey takes a very dark turn not too far into their adventure. The crisp winds become a blinding storm, in which Ralph and Pete are forced to fight for their lives. Unfortunately, only one man survives - Pete. One Mile of Ice uses visual components to build imagery, as well as tactile techniques to throw readers into the mind of the protagonist. Alongside this, the author uses auditory traits to reproduce the true terror experienced in this story by these brother-in-laws.
In today’s society, it is evident individual's needs, wants, and behavior have quickly adapted and evolved over the years, but so have business organizations. What once started in 1922, as a simple creation to fulfill John A. Macdonald's promise to unite the new country of Canada by building a transcontinental railway, has now transformed into what is recognized as the Canadian National Railway Corporation, with a market cap of $55.9 billion just over 100 years later (Forbes). It is important to understand CNR’s key to success is based on several factors such as; maintaining and constantly improving their formal design
Russians consume 2.5 kg of ice cream compared to the 16 kg in the USA. This is due to a different mode of consumption. Russians consume ice cream “on the go” as a snack – Spontaneous/impulsive purchase (no in-house consumption at the beginning)
The Business Strategy and Policy course relies on conceptual and analytical skills to examine the challenges of firms. We apply and integrate analytical techniques from accounting, finance, management, marketing, economics, and related business disciplines. Two capabilities are of particular importance: (1) the ability to critically evaluate the profit potential of industries or environments and deal with the threats and opportunities presented by each; and (2) an
I believe the Iceman was killed in a brutal battle with a few individuals. To start, the iceman was most likely being fired at with arrows so he shot back with his own. On the body of the iceman there is evidence to support this, on in his quiver there was a few broken arrow shafts showing he tried to defend himself. From here on, he tried to fight whoever was trying to kill him. Otzi was in a close quarters fight with the mystery attacker and there is also evidence to support this. On his body, in a x-ray they discovered that he had broken knuckles leading to the conclusion that he was in a fight. Others argue that Otzi was a human sacrifice to the gods, but there are so many unanswered questions if that were true.
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 be doomed even more when you add growing and strong competitors to the mix. But what caused all this? In the following problem analyisis, we will discuss basically 4 categories of issues that Ice-Fili is undergoing:
To achieve that Ice-Fili will highlight its main asset: the fact that their ice creams are made using only natural products. This corresponds perfectly to the needs of Russian consumers and this is a very differentiating element with respect to its competitors.
The ice cream industry is very a competitive field. Blue Bell has many competitors with a bigger budget and a bigger distribution channel. The company still manage to produce top brand ice cream to please its customers. According to the U.S Market for Ice Cream, “Sales nearly $12.2 Billion in 2005 with the sales of frozen, yogurt frozen desserts at scoop shops, restaurants and vending outlets. Three years ago there was a tremendous interest in ice cream nutrition panel. Other competitors were introducing product such as; low crab ice cream, no sugar added and low fat ice cream.
1. Which segments of the general external environment, if any, are relevant to the Russian ice cream industry?
We at Temple Consulting have completed an analysis of Ice-Fili’s current corporate standing using data collected over the past several years. Using tools such as Porter’s Approach and SWOT we have analyzed the internal and external environments and have recommended several strategic plans of action. Current areas for improvement such as marketing initiatives and re-evaluation of distribution channels will increase sales and profitability almost instantly. Long term plans such as lobbying against luxury tax on ice cream, partnerships with franchise vendors, and bringing new products to the market, performing an IPO, and planning more global efforts will help keep Ice-Fili rooted as the
* 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 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, which lead to high cost of production.
The Cherry Lady falls under the premium chocolate industry. Thus, the porter’s model can be utilized by The Cherry Lady as a framework to structure and analyze its industry. According to the Model, the premium chocolate industry can be impacted by five distinct forces such as rivalry among existing firms in the industry, threats from substitutes, bargaining power of buyers, threats of new entrants, and bargaining power of