Ice Fili are Russia’s top ice cream producer so one could forgive Shamanov for being in a position of self-assurance having maintained a leading 5.2% share of the Russian ice cream market, arguably, against the odds considering international competition and economic circumstance.
Ice Fili have a strong position in the market but their relative differentiation and cost position left them ‘stuck in the middle’ with respect to some regional and multinational firms. It is clear from the financial statements that the years following the crisis of ‘98 took their toll as we see a steady decrease in sales. Ice cream consumption in Russia continues to grow by an average of 3.5% over past two years (2001-2002) indicating a steady market. However, in order to remain competitive in an increasingly competitive market it may now be the time to reassess the current business model and plan strategic direction for the future.
With the following structured assessment on Ice Fili’s model and strategy options it will become clear why their mission should be to produce traditionally made high quality ice cream made for Russian people by Russian people without compromising on the quality of ingredient. Furthermore, the company vision is to make ice cream a leading dessert option during family meal times.
Internal Organization of Ice Fili
Figure 1 represents the current business model of Ice Fili, where we see the