Ice-Fili, It’s the oldest Russian ice cream producer. It originated from the former state-run Soviet company Moshladokombinat N 8. In 1992 it was privatized and registered as a private joint stock company under the name Ice-Fili.
Environment Analysis: PEST analysis
1- Economic Segment:
The case describes two economic shocks were the Russian ice cream industry, was suffered in general for all companies. The first, was after the dissolution of the Soviet Union in 1991 (Russian companies faced big structural changes due to previous state-run economy had to shift to an open-market economy, which require these companies to provide huge investment to compete with the foreign companies, especially the fierce rivals Nestlé, who entered the Russian market at that time).
The second, economic crisis was in August 1998. Russia slipped into a financial crisis when the country was not able to comply with its debt payments. The ruble was devaluated by two-thirds and left the Russian consumers could no longer afford imported goods. Additionally, the low purchasing power of the Russian consumers forced many foreign companies to reduce their imports dramatically and the domestic competitors to rely on the Russian ice cream products with their natural ingredients.
2- Political Segment
The political segment that could have implications is the change in Russian economy, to a free market enterprise, with no money returns for international companies to sell in Russia; this would prevent achieving the market share increment for Ice Fili. Another political trend that may have a major effect on the strategy for Ice Fili, is the Association of Russian ice Cream lobbying to redefine GOST, which set a minimum state standard for ice cream, allowing Ice Fili an opportunity to increase their market share, because of their domestic ice cream. Moreover, they would need to be able to patent their product from other rival companies selling the same product under a...