Ice Fili Case Analysis

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s During the reign of Michail Grobachev in Russia’s political system, the state controlled all the distribution, planning, and production of food products. Following the disintegration of the Soviet Union in 1991, Russia turned to an open market rather than the constraining state-run economy. Ice cream producer: Ice-Fili, Russia’s largest domestic ice cream manufacturer, faced new competitors pouring into the Russian market to capitalize on this newly freed economy. An emerging competitor, Nestlé, a Swiss food and nutrition company, became a threat to Russian domestic ice cream producers as it quickly gained a substantial market share. In retaliation, Ice-Fili had to change the way its value chain, which was previously controlled by the state, functioned in order to stay competitive and maintain leadership in an ever competitive market. These changes include production, marketing, distribution, corporate structure and psychology of their company, all which are obstacles the company now faced. Overcoming these obstacles and the threat of emerging competitors are key to Ice-Fili’s survival and success. Internal Environment Analysis Ice-Fili, also known as Moshladokombinat N 8, with over half a century experience in the market believed that Russian consumers gave great importance to the presence of preservatives in their foods. Ice-Fili prided itself on using only premium quality natural ingredients as raw materials and without the addition of any artificial preservatives or colorants to their products. Therefore, Ice-Fili used all milk-based ingredients rather artificial ingredients used by the main competitors, in order to preserve their brand image. The preservatives and artificial ingredients, such as palm or coconut oil, used by the competitors reduced the cost of production. However, Ice-Fili believed that adopting these measures would affect the taste and also

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