Is Ice-Fili’s strategic position have to change ?
- Ice-Fili evolve in a big market and is success key is the fact that its products were always available for consumers from the creation of the firm.
- founded in 1937 - more than $25 million in sales in 2002 - largest ice cream market shareholder before Nestle
Root issue : Increase of substitutes and low switching costs.
- Little number in ingredients production - High number in production equipment High
BARRIERS TO ENTRY
- Economies of scale - Product differentiation - Access to distribution channels
- Concentration - Diversify (Foreign and regional)
- Lots of snacks - Low change in prices (costs) - Other goods attraction
Low switching costs Low elasticity of the demand Lack of differentiation Lots of substitutes
There is a gap between the bargaining power of equipments (high) and ingredients (low) suppliers 3
High capital available Brand name Lots of products High producing capacity
Vertical integration (distribution) Exporting in other URRS markets Create a sinergy with fast food restaurants
Distribution Too many different products No specific trademark No additional capital from the products THREATS Substitutes Equipment suppliers Competitors (Nestle and regional producers) Price war to compete
Lots of opportunities available to stay at the top of the Russian ice cream market 4
Inbound logistics Use its cold storage and production capabilities Import material
Operations High quality and natural ingredients used to produce many ice creams
Outbound logistics Distribution to retailers from different distributores
Marketing & sales Ice cream carts, TV ads, advertising agency to develop their packaging
Develop strategy implications
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