Rivalry amongst competitors
is likely to be high when there is a large number of similar functioning
industries. In 2002, a massive 300 ice cream industries were active in Russia.
Many competitors relied heavily on advertising and marketing to ensure consumers
became familiar with their products. The more familiar consumer became with
these new brands the more likely these industries would be able to convince
distributors to sell their products resulting in higher profits. Ice-Fili did
not spend near as much money advertising compared to its competitors. Because
of Ice-Filis lack of advertising, consumers were more prone to choose other
options since they were more well-known ice cream brands. The competition and
rivalry amongst existing industries would be considered high because of
domestic and foreign competition.

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