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Low entry costs have allowed regional players, who now make up 30% of the domestic market, to become a serious threat to the Moscow-based manufacturers and multi-nationals. (see Exhibit 2)
The industry can be divided into three major groups (see Exhibit3): 1) Moscow-based manufacturers (e.g. Ice-Fili), 2) multi-nationals (e.g. Nestle) and 3) a number of regional manufacturers. Competition is high in this industry since many international brands like Nestle and Baskin-Robbins have established themselves firmly in the ice cream market. The domestic ice cream manufacturers realize that Nestle is a serious threat that must be addressed...
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