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Ice-Fili - Case Study Example

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The company had been successful in the past and it could survive a series of troublesome situations including the Russian economy’s shift from…
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Case study Ice-Fili
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Download file to see previous pages In addition, emergence of a large number of domestic producers also contributed to the market share erosion of the firm in the recent years. Russian ice cream market has also declined over the last decade. The company gave primary focus to product quality and therefore it continued to use natural ingredients while foreign manufacturers widely used chemical preservatives to increase the durability of their ice cream products. This approach not only assisted the foreign players to make their products durable, but also aided them to reduce the costs. Thus they obtained competitive advantages over the traditional players like Ice-Fili. In total, the company’s traditional product policies also played a crucial role in reducing its dominance in the Russian ice cream market.
The case study indicates that Russian ice cream market exhibits strong seasonal fluctuations. The country’s ice cream consumption normally reaches at its peak during the summer season. The Russian ice cream consumption has notably declined by the early 21st century as compared to other developed economies like the United States, France, and Canada. Regional Russian producers do not give much emphasis to the promotion of ice cream products and this adverse situation keeps the country’s ice cream industry down despite the high level affordability of ice cream products in Russia. As Rukstad Wells and Yin, point out,
beer, soft drink, and confectionary industries take advantages of this favorable situation (To illustrate, the production of beer was up 23%, soft drinks 25%, and confectionaries 8% in 2000 whereas the production of ice cream was down 3.5% in the same period as compared to the previous year) which in turn worsen the growth of Russian ice cream industry.
Degree of competitive rivalry is very high in Russian ice cream industry. The exhibit ...Download file to see next pagesRead More
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