1.Problem / Issue Identification: The Russian ice-cream market is not structur whollyy attractivePorters 5 ForcesBargaining Power of Suppliers:-Not an grapple-Commodities but big seasonal variations-Limited local anesthetic(a) sources of mellow quality butter-High availability of imported raw materials-Specialist equipment mustiness be imported (but may be easy to take on?)Bargaining Power of Buyers:-consumers go low disposable income-distributors have ability ? they have many suppliers-Growth in supermarket sectors ? may wield to a greater extent power in the future-cafes and restaurants can rank which ice-cream consumers will choose-accessibility is the issue here ? consumers don?t have access to all productsCompetitive Rivalry:-low growth-undifferentiated products ? no firm seaman bunks-high seasonality-overcapacity-Ice cream margins decreased from 30-40% to 15-20% mingled with 1998 and 2000 (confectionery 6-8%)-Dollar price per kilo has dropped from 2.66 to 1.
35 (1997 Ex9/Ex7A)-high contest ? 300 players a outsized increase from only 87 in the mid 1990?sBarriers to Entry-very low-low jacket crown requirements as centre packers convert existing refrigeration-No strong brands to contest with or major players ? fragmented market-No government policy circumscribe the number of ice-cream manufacturers-No strong distribution links to break-into: distributors willing to deal on other brand at the right priceThreat of Substitutes-ice-cream is in direct competition with chocolate and beer (substitutes)THESE CAN BE intercommunicate:Increase Barriers to Entry-economies of order ed series ? rationalise products and longer ! runs, become cheaper to manufacture, ca-ca more assess and capture it-create a brand individuation and invest in marketing-vertically integrate with kiosks and distributors ? control-push for regulation of ingredients labelling on packaged ice-creamReduce Rivalry-Grow the category ? expend advertising (increase the size of the pie)-Buy up littler players or recitation branding to drive out smaller playersDecrease Buyer Power-by increase brand identity-vertical integrationDifferentiate ice-fili from substitutes-increase consumers WTP, make ice-cream better value for moneyDecrease supplier power-Local equipment supplies-Local high quality butter suppliers-By improving the brand consumers will contend the product-Stronger relationships with distributors2.External Environment &... If you want to get a secure essay, order it on our website: OrderCustomPaper.com
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