As distributors, Ice-Fili has the power
to decide what products are available to the consumers which is an indicator of
possessing high bargaining power. As mentioned there are about 300 active ice
cream industries in Russia. The domestic ice cream industries in Russia have
provided similar products that have little differences. Consumers are then able
to choose one product over there other without second-guessing. Price
sensitivity is also a factor in bargaining power. Small differences in pricing
of a product will not change consumer buying behavior so the price sensitivity
is low.