Russian Ice Cream

How attractive is the Russian cover cream market? How is it seeming to evolve? market attractiveness refer to all the characteristics that result to the success of organizations within the market. Profitability is one and Exhibit 9 suggests profit margins for retailers and distributors are just about 30% - 50%, and producers is about 15%. This is high in the Russian food constancy where, the profitability in the confectionary industry was only 6% - 8%. The russian trash cream industry had about three hundred companies in 2002. The largest municipal competitor, Ice Fili only had about 5% market share. The rest were shared among unknown competitors and small regional producers. There is no legal barrier to entry and happen except for the official standard (GOST) set by the tie of Russian Ice Cream Producer to determine frosting cream classification. Private ice cream equipment companies also develop quickly in the region. This lowers the entry cost as ice cream manufacturers no longer need to import the equipment.

Russian ice Figure 1: Porters model of v competitive forces Applying the above information in the model and Market does not look attractive. Face strong competition from orthogonal ice cream producers. Compared to other With the dissolution of the Soviet Union, foreign ice cream companies poured into Russia to capitalize on this new market. The domestic ice cream producers did not know how to adjust to a free market economy manufacturers profit margin skin from 15% - 20% in 1999. As of 2002, domestically produced Russian ice cream filled the low to medium aim price category, whereas foreign ice creams were positioned in the premium ice cream category, selling at almost double price. If you neediness to get a full essay, order it on our website: Orderessay

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