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Strategic Growth for DPC

DPC is looking to become the number one firm in the repacking business but is unsure of the best strategic direction. It considers three options: 1) maintain and improve its liquid line services, 2) retail repacked items under its own brand, or 3) create new product lines. The recommendation is to maintain and improve liquid line services, as it has the greatest growth opportunity due to higher returns, limited competition, and potential for expansion in the industry. DPC's strengths include operating in multiple service lines and providing packing services to major companies. Its weaknesses include a lack of formal policies and not branding its packaging services.

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Christine P. Toledo
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413 views2 pages

Strategic Growth for DPC

DPC is looking to become the number one firm in the repacking business but is unsure of the best strategic direction. It considers three options: 1) maintain and improve its liquid line services, 2) retail repacked items under its own brand, or 3) create new product lines. The recommendation is to maintain and improve liquid line services, as it has the greatest growth opportunity due to higher returns, limited competition, and potential for expansion in the industry. DPC's strengths include operating in multiple service lines and providing packing services to major companies. Its weaknesses include a lack of formal policies and not branding its packaging services.

Uploaded by

Christine P. Toledo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

DYNAMIC PACKAGING

STATEMENT OF THE PROBLEM

Despite having a grand plan during the DPC’s strategic planning process, the company is unsure what
strategic direction to take in order to achieve its aim of becoming the number one firm in the repacking
business.

STATEMENT OF OBJECTIVES

1. To determine the strategies DPC should execute to increase its market share.
2. To document the processes in order to implement the strategies effectively.

ALTERNATIVE COURSES OF ACTION

1. Maintain and improve liquid line services.


 Liquid Line Services has low manufacturing/fixed cost
 DPC may lose focus and neglect their other product lines

2. Retail the repacked items under the company’s own brand name.
 Provides more control on the products being packaged.
 They’ll be able to create their own name both in the packaging and commodity provider
industry
 Costly because they may need an R&D team to formulate new products
 They’ll have increased liability in the items that they’d release in the market

3. Create new and related product lines.


 Increases the number of product lines
 They’ll be able to really meet the customers’ other needs
 Requires research about the market they want to tap
 Risky because it is going beyond what they are used to

RECOMMENDATION

Maintain and improve liquid line services.

The Liquid Line Services of DPC posed the greatest opportunity for growth. This service line bested in
the contribution margin analysis because of higher returns, limited players in the industry, and the huge
potential for growth. In order to maximize this strength, DPC should invest to improve its Liquid Line
Services.
ANALYSIS OF RELEVANT FACTS

STRENGTHS:

 Operates in three service lines


 3rd Place in terms of market share in the industry
 The president is hands-on in the operations
 Provides packing services to several big companies such as RFM, LTS, Phils., Wrigleys, Kraft

WEAKNESSES:

 Did not have formal written company policies on procedures of different functions
 Packaging or repacking function did not bear DPC’s name
 Centralized organizational structure

OPPORTUNITIES:

 Limited industry players, huge growth potential


 Diversification to repacking even non-food items (e.g. shampoo, toothpaste, gel, etc)
 Venture into retailing or repacking items carrying their own brand name

THREATS:

 Greatest competitor holds 50% of marker share


 Possibility of major clients repacking their own products

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