Russian Ice-cream Market, Strategy for Ice-Filli - Assignment Example

Question 1 Porters 5 analysis indicates that the Russian ice-cream market is not structurally active. This is due to a number of reasons, which include: this market has limited local sources of high-quality butter. Specialist equipment is, thus imported from the oversea nation while the available raw materials for butter are still expensive. Additionally, the bargaining power of buyers is still high since they have low disposable income. Question # 2 This market will make raw materials for butter readily available for manufactures at cheaper costs.

This will also create and capture more value (Vögtlin 7). Additionally, this market will create a strong brand identity and increase marketing of products. The number of companies will also be reduced to minimize competition. This will be achieved through buying of smaller players.Question # 3I recommend that Ice-Filli should adopt and implement a buyout strategy. This is because this company still has a number of weaknesses in improving its managerial and capital resources, which are required to create and implement the existing strategies.

I feel this company will be more secure, in the future, if it is managed by an investment group or another company, which can invest the knowledge and capital required to thrive and survive.