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A Strategic Case Analysis of Ice-Fili

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1. Introduction

This paper analyses the performance of the company Ice-Fili at the end of fiscal year 2002. It’s the oldest Russian ice cream producer. It originated from the former state-run Soviet company Moshladokombinat N 8. In 1992 it was privatised and registered as a private jointstock company under the name Ice-Fili. Its CEO is Anatoliy Vladimirovich Shamanov. He transitioned the company to a privatized for-profit firm after the dissolution of the Soviet Union in 1991. The transition was successful; it could hold its good market position and remains the largest Russian ice cream producer in the year 2002.

All information about the company, the competitive environment and the political situation used in the following article are derived from the Harvard Business School Case Ice-Fili (Rukstad, Mattu, & Petinova, 2003).

2. External Analysis

In this part it will be looked at the Russian ice cream industry. Therefore, an industry definition will be given. Its structure will be highlighted and from there on, the threats for Ice-Fili will be examined.

2.1 The Russian ice cream industry

In the case of Ice-Fili we deal with the Russian ice cream industry. It concerns the production of frozen ice cream products from the raw material to the selling of the different sorts of ice. The original Russian ice cream consists only of natural ingredients. The people love its unique flavour that comes mainly from the high percentage of milk fat which makes it less sweet and more aerated than the western products.

The Russian ice cream industry had to suffer from two economic shocks in the late 20 th century. The first was after the dissolution of the Soviet Union in 1991, when the state-run economy had to shift to an open-market economy. This meant for the Russian companies big structural changes. The companies had to invest significantly if they wanted to

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