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Tetra Pak Pest Analysis

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PESTEL (Ecological)

Ecological issue is very important aspect to the company since any violation regarding ecological or environment affects the company as a whole. Reputation of the company is at stake. With the historical production of 179.9 billion packaging material produced across the globe, it definitely used a lot of resources and produced a lot of waste as the result of the production process as well as the recycling material of the packaging itself.
From the history, Tetra Pak has been taking care the ecological issue ethically; these are some of the programs they participated at:
• Agreement with WWF Organization to globally cooperate in forestry and climate change program
• Team up with other organization-providing place to recycle …show more content…

Innovation and solution to customer are the heart of the operation of the company. To retain its position as the leader in food industry packaging, they cannot stop making improvement, inventing new process as well as new product. This position put tremendous pressure on them, since the competition on this industry is very intense. Keeping their technological advances as well as process advances ahead of competition is very crucial for them. They cannot afford to be number two, since it will erode their leadership as the new player or smaller player steal their market share. That’s why Tetra Pak put itself as solutions provider for its partners, such as, packaging solutions, processing solution, competitive landscape, delivering value, rationalize and reorganize and environmental progress. When the market is very competitive one can differentiate them by emphasizing that what they sell is not just …show more content…

Tetra Pak uses the indirect export way to gain more market share. It sells the license of the company and let its clients buy and make contract with Tetra Pak. Licensing meaning that the clients would buy the packaging machines from Tetra Pak and as the change, Tetra Pak will provide the raw material since Tetra Pak is the manufacturer of the clients. The purpose of licensing are first, that Tetra Pak can develop its localization and this would make Tetra Pak geographically closer to the clients and resulting shorter time in doing the delivery the goods to the clients, meaning that they also would get faster feedback and if there is something to be solved, Tetra Pak can make an immediate response to the occurring problem. Secondly, is the matter of SOP (standard operating procedure) making Tetra Pak can do better in the quality control and be able to ensure low failure of the defected products.

When it comes to the clients, Tetra Pak is good in delivering good value of the company. Tetra Pak knows that the clients have different behavior in the purchasing. Unlikely B2C clients, Tetra Pak clients buy Tetra Pak’s material in a big amount of quantity and they would use them for the mass production of food and beverages. In addition, Tetra Pak’s clients such milk factories, they focus on the final quality of the goods, resulting them not to look at the price as a prior

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