identity in an industry, and Tetra Pak could do this by limiting its product offerings and focus on becoming more specialized the aseptic packaging materials. Logically, since a differentiator has a higher price point than its low cost rivals, there must be a value-added element of the product or service offered by the differentiator. Consumers – namely, Chinese food producers requiring aseptic packaging materials – must be able to clearly identify the distinctive competencies that justify Tetra Pak’s premium price. An emphasis on high-quality is key for this pricing justification.
TETRA PAK VERSUS GREATVIEW PAPER 3 Unlike Greatview and other competitors that use a low-cost structure, Tetra Pak’s strategy will reach the value-creation frontier by emphasizing differentiation through a high degree of innovation. (Refer to Appendix: Figure 1.b.) However, differentiating Tetra Pak’s product offerings is only one dimension that must see change under this strategy. Tetra Pak can further differentiate itself through articulate hiring and employee development process, an exceptional hiring and employee development process can create an inimitable competitive advantage in this industry and ultimately help further differentiate Tetra Pak from Greatview. Customer service is crucial element of customer responsiveness that builds the identity of the company as a high-end and quality supplier. The company’s customer partnership strategy is integral to its success, however it is very imitable and Greatview could choose to utilize a similar strategy. If Tetra Pak is able to hire quality, knowledgeable employees (preferably from China) that act in a manner that is consistent with the brand image and abide by the local policies in China, the company will be able to further leverage this strategy as a way to build long-lasting relationships with customers and eventually regain market share. In implementing a differentiation strategy, Tetra Pak is on track to create a strong presence in China . In any new environment, the largest industry players must strive to establish strong relations with the Chinese community members and the Chinese government. Tetra Pak has a negative history of abusing its dominant position in the food packaging industry, a reputation that it should aim to completely turn around through differentiation. Strong relations with the Chinese
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