Logoplaste Essay

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Case 1: Logoplaste: Global Growing Challenges 1) HOW did Logoplaste manage to continuously grow its profitability and accelerate its profit growth? WHAT was the successful business model that led Logoplaste to become an MNC? Logoplaste practiced the “hole-in-the-wall” concept. Single client plants were built, tailored to client’s needs and located inside client’s plants. This concept helped Logoplaste reduce transportation costs and offer “just-in-time” service to clients, which was still new to other competitors at the time. In the meantime, the company still had full ownership and control over its plants. In these plants, local management and technical team were responsible for the operation, while the headquarters in Portugal provided coordination and solutions to complex technical problems. All of these factors helped the company to continuously grow. The successful business model that led Logoplaste to become an MNC was first having the “hole-in-the-wall” concepts, which means Logoplaste’s plants are located where its’ clients are. Secondly, having presented itself as cost-competitive player, Logoplaste chose “blue chip companies, which produced consumer staple products,”. This strategy has led Logoplaste to become container producer for some of the largest multinational consumer goods companies. The company, indeed, built partnership with its clients, such as Procter & Gamble. Logoplaste was also able to provide innovative, quality and flexible service. In each of its plants, decentralization was critical to Logoplaste, the company recruited local management team as well as technical team. Last but not least, the company developed a win-win business that provides services with transparent price, and shares risks with partners. 2) WHAT are the core competences owned by Logoplaste? HOW did they leverage these competences to excel in global competition? One

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