Ice Fili Case Study

1180 WordsOct 7, 20075 Pages
1.Problem / Issue Identification: The Russian ice-cream market is not structurally attractivePorters 5 ForcesBargaining Power of Suppliers:-Not an issue-Commodities but big seasonal variations-Limited local sources of high quality butter-High availability of imported raw materials-Specialist equipment must be imported (but may be easy to copy?)Bargaining Power of Buyers:-consumers have low disposable income-distributors have power - they have many suppliers-Growth in supermarket sectors - may wield more power in the future-cafes and restaurants can dictate which ice-cream consumers will choose-accessibility is the issue here - consumers don't have access to all productsCompetitive Rivalry:-low growth-undifferentiated products - no strong…show more content…
By reducing number of products carried, the firm will be able to differentiate them better, allocate marketing budget to most profitable products, and, therefore, increase brand recognition. Additionally by focusing on fewer products, they will be able to gain economies of scale and spread their high fixed costs. Structure:Operations:Performance:Financial Analysis:3.identify alternatives to increase market share:Offensive Strategies1.attack nestle head-onmove to a broad cost-leadership approach (session 3, page 4 & 6)cut costs structure to compete2.Invest to improve competitive position:Focusing on their core competencies - differentiation strategy. clear focus on optimising the process - activities to increase WTPmove to a broad differentiation - needs based positioning (week 4, page 4)improve customer loyalty and retentionbuild a marketing advantagerequires a strong leaderco-operative corporate cultureCreate more value (increase the size of the pie) and then capture the value!Cost drivers - identify ways to extend shelf-life of the product without compromising the value to the customer (i.e. all natural ingredients, super taste)3.change the rulesintroduce a new technology - innovatepush for a shift in regulatory requirements (ingredients labelling)4.Invest to enter new marketsfocus on non-impulse channelsoverseasDefensive Strategies1.Protect position•Protect market share•Build customer

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