Logoplaste: Global Growing Challenges Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Logoplaste: Global Growing Challenges Case Study Help

Furthermore, Logoplaste’s fourth major competitor PlastiPak has a presence in the US, Europe and South America while at the same time it has long standing relationships with P&G, Kraft foods as exclusive suppliers for some of their products. This means that the Asian market is the most promising one for establishing long term relationships with P&G especially as players like PlastiPak do not have a major presence here.

Action Plan

Since growth has been suggested towards the Asia Pacific region to cater to the Asian and Asia Pacific market, the trends needs to be evaluated according to their favorability for this particular market. While large FMCGs are still producing their own containers locally or sourcing them from small local firms, catering to large players like P&G and Unilever would require investment in plant and equipment.

Since the trends are indicating large filler plants for servicing large markets, Logoplaste’s investment should not be limited to small or medium sized plants in this region. Even if Logoplaste opts for entry into the European region it would have had to establish large plants to cater to consolidated players like ARLA, Saputo and Lactalis. However, as it has already been established that CEE & Russia do not offer favorable opportunities to Logoplaste, Asia Pacific needs to be considered for establishment of plants.

It should be noted that players like P&G are looking for similar standards in quality and design for its Western and local markets. This suggests that production of plastic containers in plants in Asia or Asia Pacific can also be used for catering to the Western market’s demand. This opens up the possibility of opting for sustainability in packaging where Logoplaste would be using green production methodology in its plants. This would be a favorable move not only for establishing an image as a socially responsible player but would also open avenues for entry into China. The Chinese market has also shown preference for sustainability as per recent feedback which suggests that a sustainable approach to entry in the Asia Pacific market would ease entry into China as well.

In addition to this, the borderless image of FMCG brands provides an opportunity for Logoplaste to cater to P&G’s Western market from its Asian factories especially as players like Wal-Mart are looking for suppliers with a reduced carbon footprint.

So as per this analysis, it has been recommended that Asia Pacific should ne the chosen market while the mode of entry should be foreign direct investment. In addition to this, Logoplaste would be opting for sustainability which would open avenues in China, Western markets.

Strategies to enter Asia-Pacific Market

AAA Framework

Three strategies have been discussed for Logoplaste as per the AAA framework. These strategies would be evaluated for Logoplaste’s entry into the Asia Pacific market. It can be seen from appendix 3 that both ‘aggregation’ and ‘adaption’ are better strategies for entering countries with similar cultural, administrative, geographical and economic environments. As per the CAGE analysis the Asia Pacific region has cultural, administrative, geographical and economic differences with Logoplaste’s home country so ‘arbitration’ would be the best option here.

Since ‘arbitration’ requires coordination in the form of vertical integration, Logoplaste would have to form strategic relationships with suppliers of plastic in Asia Pacific to strengthen its supply chain. P&G’s entry into this region has already solidified the customer base.(Pankaj, 2017)

Since the heads of functions in this organizational setup could prove to be powerful for initiating change within the organization, it is preferable to make use of management from Logoplaste’s head office to work in Asia Pacific to form a cultural environment which can blend in with P&G’s quality standards.

The aim would be to exploit absolute economies of scale through international specialization where Logoplaste would not just be standardizing its products to achieve scope and scale. Such a strategy would enable the company to make the best use of all areas for achieving economies of scale.

As suggested in earlier sections, under this strategy, Logoplaste would be exploiting the differences in Asia Pacific by locating separate parts of the supply chain in different places. The factory may be established in Asia Pacific but plastic suppliers could be reached out in close regions in developing nations of Asia. Additionally, customers could be FMCGs like P&G or other multinationals that have established their bases in developing nations or other parts of Asia Pacific. This strategy would allow Logoplaste to avail optimal benefits in the form of cost effectiveness and differentiation since it would be making use of quality standards and sustainability to offer a competitive edge.

Generic Strategies

As per Porter’s Generic strategies shown in appendix 4 we can see that an organization can attain a competitive edge either through cost leadership or differentiation if it has to opt for an industry-wide scope. Opting for both strategies simultaneously may leave a player in the middle. It has already been established how Logoplaste had managed to attain a low cost strategy in its home market. Cost leadership in the global market would be possible through absolute economies of scale as explained earlier where Logoplaste would be opting for supply chain integration by opting for strategic partners that can allow vertical integration while maintaining quality standards for differentiation. In addition to this, Logoplaste’s ILab is in itself a differentiating factor especially as this strategy already offers a complete packaging solution to customers through an integrated approach. So entry into Asia Pacific via ‘arbitrage’ would basically be making use of vertical integration and extending the ILab concept globally. (M., 2010)......................................

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