Ice Fili Case

The problems that Ice-Fili was facing stemmed from the rising level of competitive threat in a mature industry . Currently the company 's position is favorable given the fact that it has a higher production capacity than its rivals and that in terms of market share it has a lead over international competitors such as Nestle and Baskin-Robbins However the competition position was not sustainable because of the rising level of competitive threat not only in the form of international manufacturers upgrading their equipment and technology but also in the form of regional

producers taking advantage of their small sizes and low costs . As a result , Ice-Fili which was a mid-sized company and thus did not have the same degree of flexibility was at a disadvantage when it came to competing for distributors ' shelf space . Even the existing distribution structure was proving to be ineffective as market consumption patterns were changing . As a result the management of the company was standing at a critical juncture in terms of formulating strategies for future growth expansion . As matters stood , the company had a favorable competitive position in a mature industry . In this situation , according to the ADL matrix , the management would have to formulate strategies aimed at differentiation through selective investment

The company was in cash-strapped position and therefore would have to raise the necessary capital through initial public offering . However there is a considerable level of excess capacity which the management should consider utilizing to generate the required level of capital . The problem with launching the IPO is that the internal culture of the organization would have to be restructured . Currently the organizational culture is based around a small family as a result of limited size of ownership . In the case of public ownership , the decision-making authority would be decentralized and that would only worsen the situation as far as flexibility is concerned . Flexibility is the key in the industry because of the need to offer different incentives to the distributors . Currently most distributors are opting to stock goods from regional producers because they are more flexible in their manufacturing processes and therefore can adapt to the changing patterns of demand This aspect has to be taken into careful consideration by the management at Ice-Fili because according to the ADL matrix , the company has to develop a niche position or at the very least maintain its current market share

Based on the analysis conducted under the framework of the ADL matrix the industry life cycle is in the maturity stage . This is because there is little or no market growth , competitive pressures are rising and there is a considerable level of differentiation existing . Under the circumstances , the company is in a favorable position to implement strategies aimed at developing a sustainable competitive position because of advantages related to production capacity and breadth and depth of products . According to exhibit 11 , Ice-Fili has the highest records in both respects compared to competitors . These advantages can be applied to enhancing efficiency in both production...