Tetra Pak Versus Greatview Harvard Case Solution & Analysis

Answer 2

Tetra Pak has to deal with GreatView who are threatening their market share within China and if they do not apply any concrete competitive strategy against them then their new rival would fully take advantage of the antitrust laws processing and the customers need to have more options. Porter has suggested certain competitive strategies which can be used to combat the challenge presented by GreatView. Cost leadership would enable Tetra Pak to take advantage of their economies of scale and special access to raw materials that are of utmost importance in aseptic packaging and affordable technology.

This strategy, however, is no longer a feasible option as they have already exploited all the sources of cost advantage and it is the primary reason why the antitrust laws are being pushed against them and if during this scenario they attempt to do so, then their rivals would take full advantage of this move and further incite the industry against them.

The next strategy suggested by Porter is differentiation that syncs with their patent and research strategy. Through their research and development, Tetra Pak has accumulated over 5,500 patents and their innovations make them stand tall against the new entrants such as GreatView who do not have the capability to invest in a high level of innovation or research.

As the case study outlines that in China the patent laws are weak and easily manipulated, therefore, Tetra Pak needs to protect its patents and nurture a perception that are the providers of certain products/dimensions which are widely valued. By uniquely positioning themselves as different from others, Tetra Pak would cease to fight over the same market share as of GreatViews’.

The last strategy is Focus that has two variants, cost focus in its target market or differentiation focus in its target market. By narrowing their target market, they would also narrow down their competitive scope which would allow them cut past the masses. Finding a segment within the target market which has unfulfilled needs required specially by the tailored service would again eliminate their emerging rival, GreatView as they do not have the capabilities to serve such a segment.

Furthermore, as the CEO of Tetra Pak, I would immediately eliminate the tying and bundling strategy with exclusivity rights. This would be done to prevent the risk of getting stamped with unethical practices and to ease the situation with the antitrust laws. Elimination of this strategy would also leave more room for focusing on a more specialized segment of the target market thereby, changing the pace of the game. The strategies mentioned in the case study i.e. sustainability development strategy and the cooperative advertising strategy should be continued to be implemented.

The sustainability development strategy is essential to be played up to counteract the allegations of misusing their monopoly status and restore positive public opinion and even influence the processing of the antitrust laws. While the cooperative advertising strategy is also essential to remind the consumers of the providers of this convenient packaging and maintain their role in being the pioneers in providing such environmental compatible products.

One mistake done by the company was that they did not consider non-market forces in their plans and had a contingency plan made to deal with them when they eventually affected the company. The nature of Tetra Pak’s strategies has ended up working against their core values and has brought out public criticism and government action against them.

The causes of this onslaught are deeply rooted within the nonmarket forces which differ from the market forces such as internal operations, supply chains, products and services and more. In China, forces such as interest groups, activists, and the government were ignored; this was a grave mistake made by the company as these forces largely affected the market of China. As mentioned before, the non-market environment consists of social, legal and political factors that must be addressed to inform any strategies effectively.

As the CEO of Tetra Pak, any new or old strategy implementation and formation would incorporate nonmarket forces and would be aligned with the core values and competencies of the company. Lastly, SWOT analysis would be redone to clearly outline all the strengths, weaknesses, threats and opportunities of Tetra Pak, which would identify any specific details which are not apparent in the first view...............................

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