Ice Fili Is A Large Scale Domestic Ice Cream Market Essay

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Although Ice-Fili is a large scale domestic ice cream producer it must compete with other large and small firms in the overall ice cream industry. To breakdown this dynamic I will begin my report with an analysis of the overall ice cream industry in Russia, and will then move on to an analysis on Ice-Fili’s competitive advantages, and strategy. Lastly after analyzing these two areas I will provide my recommendations for Ice-Fili over the next three to five years.
External Environment Analysis (Five Forces)
Threat of New Entrants: High. In the Russian ice cream market we see competitors of ranging sizes competing against one another. 30% of the domestic market is made up of regional small scale producers that have come into the market because it was easy for them to pivot from producing frozen foods to ice cream with very limited capital. Outside of regional producers foreign ice cream companies can enter into the Russian ice cream market whenever they so choose by importing their products to distributors. Foreign companies have been controlled as of late due to instability of the Russian currency against the U.S dollar, but even with this currency risk some foreign competitors have been able to survive by making large capital investments, and producing their product within Russia instead of importing it.
Degree of Rivalry: Medium. The degree of rivalry within the industry is balanced in that a few factors lend to strong rivalry while a similar amount do not. Because

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