Introduction
Tetra Pak is the largest manufacturer of the aseptic materials for purchasing. However, current market challenges come from the high threat from new industry entrants around the world. Risk includes being mired in antitrust cases. Greatview Aseptic Packaging Company Limited, as well as other contenders, became a significant contender, eventually eating into the market share of Tetra Pak in the industry. Outside China, other contenders gained considerable influence over the market and the industry in general. Since Greatview benefited from the political environment of China, it easy to assume that its success comes from government support. Ensuring that the company gains a competitive position again in the market needs to be based on correct organizational leadership, a competitive position in the industry, and focusing on profitable products.
a) Analysis of Tetra Pak’s situation and current position in the sector.
Porter’s five forces.
Supplier bargaining power.
From the analysis, the market for packaging materials has a significant degree of differentiation according to segments. These include plastics, glass metals, paper, and metal cans. The aseptic packaging, on the other hand, has very few suppliers, which were large international companies that vary depending on the raw materials they produce. Ghadge et al., (2017 p.262) states that such a situation makes the distinguishing suppliers quite a little hard. Due to the lack of differentiation of the raw materials, low switching costs between the suppliers, it is quite common that different packaging materials meet the needs of the customers. Many suppliers also possess quite an array of niches, thusly seeking to meet specific consumer demands. For this reason, the bargaining power of suppliers is moderate.
Bargaining power of buyers.