Logoplaste is a top ten rigid plastic containers manufacturer has been under pressure from its partners to make a massive global expansion. In year 2010, the company conducted a debate to ascertain the best expansion strategies it could use to meet the desires of its esteemed clients. The Company, which just started with a few companies in Portugal during the 1990s, now has about 60 plants worldwide. Its partners are multinational consumer goods companies with a large clientele base for their products. They have been pressuring Logoplaste to increase its production in order optimize the increased market demand. The company has been facing phenomenon global growing challenges.
Structure and financing
Logoplaste started as a small single-nation operation, faced numerous challenges when attempted to develop a global footprint. Its first challenge was trying to determine how to structure all new foreign operations. The company had to be exceptionally keen on keeping the costs of products and operations low given the industry’s price competitiveness. To remedy this problem, the company’s operation was set as a lean entrepreneurial venture. Most of the staff were local and performed multiple functions for the company.
The second problem was financing the foreign operations. As a small company, Logoplaste had financed its initial growth by borrowing from Portuguese banks. Because of its moves to expand abroad, the company’s finances started drying up. This was due to smallness of the nation’s banking sector and currency risks drawn in from financing non-euro ventures. To remedy this problem, Logoplaste spent immense time building relations with foreign financing companies. They also had to publicize its strong track-records so as to obtain finances from foreign banks.
Client Recruitment and Retention
Logoplaste faced a challenge of trying to recruit new clients. At the same time, it focused on retaining the already available clients. The company had to ensure that all their client’s demands were met. To remedy this challenge, the company generated a long-term focus of the company and enhanced its flexibility in serving its clients. The long-term plans faced a challenge of developing lasting relationships with numerous large consumer items customers.
Another challenge Logoplaste faced was ensuring that all contract negotiations did not come down to just a matter of price. So many regional companies sort to go in business with Logoplaste. Companies such as P&G wanted to have a centralized control in trade operations with Logoplaste. However, Logoplaste’s long-term plan was to become a preferred partner by numerous companies spread in different continents across the globe. To remedy this, Logoplaste had to create a cordial relationship with numerous companies locally and abroad. Logoplaste had to provision an agreement on the scale of business they would perform with all the companies involved.