Strategic Management Case Analysis Tetra Pak versus Greatview Submitted By: Michael Celio (212781613) and Monica Faheim (212776241) Submitted To: Stan Xiao Li Course: SB SGMT 3000 A Date Due: 5 November 2015
Introduction Although Tetra Pak was able to enjoy a leading position in the aseptic packaging industry for several years, the emergence of Greatview and other small-scale companies in the Chinese market calls for new competitive decisions in order to regain market share and ensure long-term profitability. When Greatview began its operations in Beijing and produced materials compatible with Tetra Pak’s machines, they executed a successful imitation of Tetra Pak’s products and essentially robbed Tetra Pak of any distinctive, unique competency. Tetra Pak must now establish a business model that will attract customers and also improve customer responsiveness, efficiency, innovation and quality. These dimensions form the building blocks of competitive advantage, and will be addressed in the following report in order to provide a specific approach that will help Tetra Pak deal with the challenges posed by Greatview. Solution: Focused Differentiation Strategy A critical analysis of the external and internal environment surrounding Tetra Pak in China was conducted using Michael Porter’s 5 Forces Model (Refer to Appendix Figure 1.a), and several conclusions have been drawn with regard to the direction Tetra Pak should follow with regards to its operations in China. Firstly, it was determined that in order for Tetra Pak to gain competitive advantage over rivals such as Greatview, the company must pursue a focused differentiation strategy . Under this approach, Tetra Pak should strive to distinguish itself from its rivals through product offerings that emphasize innovation. In pursuing this strategy, Tetra Pak should treat China as its specific market segment, and the large food producers as its customer group. Furthermore, since Greatview has successfully established its low-cost structure in the Chinese market, Tetra Pak must be able to justify its premium price in order to stay in business
and gain market share. A firm that follows a focused differentiation strategy is able to gain
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