Competitive Strategy Analysis of Amcor Limited: A Case Study
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This assignment examines the competitive strategy of Amcor Limited, a global packaging company, using various strategic development tools. It analyzes the company's macro and micro environments through PESTLE and Porter's Five Forces models, respectively. Additionally, SWOT analysis identifies internal strengths and weaknesses, while Ansoff's matrix explores growth strategies. The study aims to provide insights into Amcor's competitive landscape and potential avenues for future success.
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Assessment 1: Individual Assignment
1
1
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Contents
Introduction......................................................................................................................................3
Company Background.....................................................................................................................3
Strategy Development Tools........................................................................................................... 3
PESTLE Analysis............................................................................................................................ 4
SWOT Analysis............................................................................................................................... 5
5F Model..........................................................................................................................................6
Ansoff Model...................................................................................................................................7
Conclusion....................................................................................................................................... 8
References........................................................................................................................................9
2
Introduction......................................................................................................................................3
Company Background.....................................................................................................................3
Strategy Development Tools........................................................................................................... 3
PESTLE Analysis............................................................................................................................ 4
SWOT Analysis............................................................................................................................... 5
5F Model..........................................................................................................................................6
Ansoff Model...................................................................................................................................7
Conclusion....................................................................................................................................... 8
References........................................................................................................................................9
2
Introduction
The competitive strategy in the corporate world refers to the key plans that are developed for
gaining competitive advantage for the companies from their competitors. While formulating and
analysing the strategies, companies use various tools and techniques for gaining competitive
advantage for both external and internal environments. The competitive strategies made by the
organizations help them achieve and retain the top position in the competitive market. The
organization selected for better understanding of the competitive strategy is Amcor Limited, a
packing company.
Company Background
Amcor Limited is an Australian ASE-listed company, which is a packing company and serves
globally. It produces and develops flexible packaging materials for personal-care and other
products. In this assignment, the competitive strategic tools (PESTLE analysis, SWOT analysis,
5F model and Ansoff’s model) have been used in context of the Amcor Limited for innovative
packaging.
3
The competitive strategy in the corporate world refers to the key plans that are developed for
gaining competitive advantage for the companies from their competitors. While formulating and
analysing the strategies, companies use various tools and techniques for gaining competitive
advantage for both external and internal environments. The competitive strategies made by the
organizations help them achieve and retain the top position in the competitive market. The
organization selected for better understanding of the competitive strategy is Amcor Limited, a
packing company.
Company Background
Amcor Limited is an Australian ASE-listed company, which is a packing company and serves
globally. It produces and develops flexible packaging materials for personal-care and other
products. In this assignment, the competitive strategic tools (PESTLE analysis, SWOT analysis,
5F model and Ansoff’s model) have been used in context of the Amcor Limited for innovative
packaging.
3
Strategy Development Tools
The competitive strategy tools help the company in gaining competitive benefits over the
competitors’. The major competitors who are running for the Amcor are the Pact Group, Visy
Industries and the Sealed Air Australia who are playing good in the market and provide the
packaging solutions. The challenges faced by the Amcor Limited are basically in the supply
chain, customisation, material weight and safety areas. The use of these 4 strategic models is
analysed and their importance is discussed with their applicability for the Amcor Limited. A few
strategic tools have been discussed below which will help in achieving future goals for the
business (Albin, et. al., 2017).
4
The competitive strategy tools help the company in gaining competitive benefits over the
competitors’. The major competitors who are running for the Amcor are the Pact Group, Visy
Industries and the Sealed Air Australia who are playing good in the market and provide the
packaging solutions. The challenges faced by the Amcor Limited are basically in the supply
chain, customisation, material weight and safety areas. The use of these 4 strategic models is
analysed and their importance is discussed with their applicability for the Amcor Limited. A few
strategic tools have been discussed below which will help in achieving future goals for the
business (Albin, et. al., 2017).
4
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PESTLE Analysis
Firstly, the PESTLE model of competitive strategy is discussed. The PESTLE analysis provides
in-depth analysis of macro environment for the company. The macro environmental factors and
the ways in which they impact the working of the company are discussed in detail.
Political –Political factor plays a vital role as political stability is required for long-term
profitability. It is globally operating and therefore it is exposed to multiple political system risks.
Economic –The economic factors such as foreign exchange rate, inflation rate, interest rate and
inflation impacts greatly on the business as it directly hampers the skilled workforce, efficiency,
unemployment rate, and so on.
Social – The culture of the society plays an important role for Amcor as it becomes important for
their marketers to understand the customers on a given market.
Technological – The technological factors have been dominating the industries for the last
decade and Amcor working are also disrupted by the use of advanced technology by the
competitors. Amcor will need innovative and advanced technology for survival in the industry.
Environmental – The factors like bad weather, climatic conditions, and so on which
unintentionally affect the working should be kept in mind before itself. The different
environmental laws and liability clauses are to be considered as they are different in different
countries.
Legal - The legal framework of different countries should be carefully evaluated while entering
new markets (Sadgrove, 2016). All the countries have different consumer protection,
discrimination laws, anti-trust laws, and so on which impact the working of the company.
5
Firstly, the PESTLE model of competitive strategy is discussed. The PESTLE analysis provides
in-depth analysis of macro environment for the company. The macro environmental factors and
the ways in which they impact the working of the company are discussed in detail.
Political –Political factor plays a vital role as political stability is required for long-term
profitability. It is globally operating and therefore it is exposed to multiple political system risks.
Economic –The economic factors such as foreign exchange rate, inflation rate, interest rate and
inflation impacts greatly on the business as it directly hampers the skilled workforce, efficiency,
unemployment rate, and so on.
Social – The culture of the society plays an important role for Amcor as it becomes important for
their marketers to understand the customers on a given market.
Technological – The technological factors have been dominating the industries for the last
decade and Amcor working are also disrupted by the use of advanced technology by the
competitors. Amcor will need innovative and advanced technology for survival in the industry.
Environmental – The factors like bad weather, climatic conditions, and so on which
unintentionally affect the working should be kept in mind before itself. The different
environmental laws and liability clauses are to be considered as they are different in different
countries.
Legal - The legal framework of different countries should be carefully evaluated while entering
new markets (Sadgrove, 2016). All the countries have different consumer protection,
discrimination laws, anti-trust laws, and so on which impact the working of the company.
5
SWOT Analysis
Second strategic tool discussed is the SWOT analysis. The comprehensive SWOT analysis
explores the strength, weaknesses, opportunity and threats of an organization. The SWOT
analysis helps in contending the marketplace. It helps in identifying opportunities in the
marketplace as well as knowing its weakness and rectifying weaknesses by working on them.
The SWOT analysis helps in achieving above average performance for the organization mainly
in differentiation, cost leadership and focus (Stasiak-Betlejewska and Tuckova, 2015).
Strengths of the Amcor Limited are its brand
image as well as other areas where the
organization is performing excellent.
Weaknesses of this organization have been like
it was caught many times for controversies
related to pollution and the alleged cartal
practices which are needed to overcome by the
company in order to achieve success.
Opportunity for an organization is an area
where it can further develop the business in
area or inefficiency. For the Amcor, the
opportunities are the growing demands in the
African market as well as getting involved in
the tie-ups globally.
Threats are the factors which affect and impact
the progress of the organization. For the
Amcor, the threat can be scarce raw materials,
and so on.
6
Second strategic tool discussed is the SWOT analysis. The comprehensive SWOT analysis
explores the strength, weaknesses, opportunity and threats of an organization. The SWOT
analysis helps in contending the marketplace. It helps in identifying opportunities in the
marketplace as well as knowing its weakness and rectifying weaknesses by working on them.
The SWOT analysis helps in achieving above average performance for the organization mainly
in differentiation, cost leadership and focus (Stasiak-Betlejewska and Tuckova, 2015).
Strengths of the Amcor Limited are its brand
image as well as other areas where the
organization is performing excellent.
Weaknesses of this organization have been like
it was caught many times for controversies
related to pollution and the alleged cartal
practices which are needed to overcome by the
company in order to achieve success.
Opportunity for an organization is an area
where it can further develop the business in
area or inefficiency. For the Amcor, the
opportunities are the growing demands in the
African market as well as getting involved in
the tie-ups globally.
Threats are the factors which affect and impact
the progress of the organization. For the
Amcor, the threat can be scarce raw materials,
and so on.
6
5F Model
Thirdly, the strategic tool discussed is the 5F model. It is one of the oldest business models that
the entrepreneurs use for running their businesses. The 5F model of competitive strategy helps in
identifying and evaluating the micro-environmental factors of an organization effectively. The
Porter’s Five Forces include - competitive competition, Suppliers Bargaining Power, Buyers
Bargaining Power, Threat from Substitute Products and Rivalry among the existing players.
Competitive competition - The major competitors playing good in the market for the Amcor are
the Pact Group, Visy Industries and the Sealed Air Australia. To achieve competitive advantage,
Amcor can reduce its cost price as well as it can bring in new products and ways of providing
services.
Suppliers Bargaining Power – With the help of building efficient and effective supply chain with
multiple suppliers the Amcor can limit the bargaining power of suppliers. Overall, the bargaining
power of suppliers, limit the profitability. Dominant suppliers use their negotiating powers and
this can be limited by developing dedicated suppliers and experimenting new product designs
with the use of different materials.
Buyers Bargaining Power – Buyers want to buy the best deals at low prices and therefore it leads
to increasing discounts and offers by the company which again is the major factor in limiting the
profitability if the buyers are stronger.
The threat of substitution and new entry – With this factor, the organizations get affected as
competitors find a new substitution or new entry of the competitors in the market. For effective
and efficient running, protection for the technologies should be done so that the threat of
substitution is decreased and limited (Fleisher and Bensoussan, 2015).
7
Thirdly, the strategic tool discussed is the 5F model. It is one of the oldest business models that
the entrepreneurs use for running their businesses. The 5F model of competitive strategy helps in
identifying and evaluating the micro-environmental factors of an organization effectively. The
Porter’s Five Forces include - competitive competition, Suppliers Bargaining Power, Buyers
Bargaining Power, Threat from Substitute Products and Rivalry among the existing players.
Competitive competition - The major competitors playing good in the market for the Amcor are
the Pact Group, Visy Industries and the Sealed Air Australia. To achieve competitive advantage,
Amcor can reduce its cost price as well as it can bring in new products and ways of providing
services.
Suppliers Bargaining Power – With the help of building efficient and effective supply chain with
multiple suppliers the Amcor can limit the bargaining power of suppliers. Overall, the bargaining
power of suppliers, limit the profitability. Dominant suppliers use their negotiating powers and
this can be limited by developing dedicated suppliers and experimenting new product designs
with the use of different materials.
Buyers Bargaining Power – Buyers want to buy the best deals at low prices and therefore it leads
to increasing discounts and offers by the company which again is the major factor in limiting the
profitability if the buyers are stronger.
The threat of substitution and new entry – With this factor, the organizations get affected as
competitors find a new substitution or new entry of the competitors in the market. For effective
and efficient running, protection for the technologies should be done so that the threat of
substitution is decreased and limited (Fleisher and Bensoussan, 2015).
7
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Ansoff Model
Fourthly, the strategic tool discussed is the Ansoff’s Model. The corporate Ansoff’s model
basically is a strategic planning tool which is also a communication tool for the organization.
Four different growth strategies for the organization are included in the Ansoff’s model, which
help the top management level for formulating the strategies for future growth. This strategic
matrix is discussed as follows. Market development & Market penetration - Market
development is done while targeting new market for increasing the sale for the same product.
Market penetration is done for selling more of the same product in the same market.
Diversification & Product development - The diversification strategic planning is very risky and
it provides very less scope for using existing expertise because it involves finding different
routes for new products to be sold in the completely different market. Product development
includes selling various products to the same customers or market. This strategic tool will help
in elaborating and developing the business to a high level (Lehner, 2016).
8
Fourthly, the strategic tool discussed is the Ansoff’s Model. The corporate Ansoff’s model
basically is a strategic planning tool which is also a communication tool for the organization.
Four different growth strategies for the organization are included in the Ansoff’s model, which
help the top management level for formulating the strategies for future growth. This strategic
matrix is discussed as follows. Market development & Market penetration - Market
development is done while targeting new market for increasing the sale for the same product.
Market penetration is done for selling more of the same product in the same market.
Diversification & Product development - The diversification strategic planning is very risky and
it provides very less scope for using existing expertise because it involves finding different
routes for new products to be sold in the completely different market. Product development
includes selling various products to the same customers or market. This strategic tool will help
in elaborating and developing the business to a high level (Lehner, 2016).
8
Conclusion
To conclude, the challenges faced by the Amcor Limited it is evident that with the use of
strategic development tools the organisation can manage its resources effectively and efficiently.
The competitive strategies discussed in this assignment help in dealing with the problem and
achieving the competitive advantages in the market. The above report will help the company in
achieving the aims and the goals strategically. All of the 4 strategic tools have been elaborately
explained to get utmost benefits and consideration.
9
To conclude, the challenges faced by the Amcor Limited it is evident that with the use of
strategic development tools the organisation can manage its resources effectively and efficiently.
The competitive strategies discussed in this assignment help in dealing with the problem and
achieving the competitive advantages in the market. The above report will help the company in
achieving the aims and the goals strategically. All of the 4 strategic tools have been elaborately
explained to get utmost benefits and consideration.
9
References
Akpolat, H., 2017. Six Sigma in transactional and service environments. Routledge.
Albin, M., Apostal, A., Lee, H., Spevacek, C., Vargas, N. and Villasenor, J., 2017. A
Natural Capital Assessment and Post-Consumer Waste Analysis for AMCOR.
Fleisher, C.S. and Bensoussan, B.E., 2015. Business and competitive analysis:
effective application of new and classic methods. FT Press.
Lehner, C., 2016. Evaluating a new plant startup in the rigid plastics packaging
industry. Pepperdine University.
Sadgrove, K., 2016. The complete guide to business risk management. Routledge.
Stasiak-Betlejewska, R. and Tuckova, Z., 2015. Technology parks as a tool of the
region’s Competitiveness Development. The determinants of competitiveness, p.143.
10
Akpolat, H., 2017. Six Sigma in transactional and service environments. Routledge.
Albin, M., Apostal, A., Lee, H., Spevacek, C., Vargas, N. and Villasenor, J., 2017. A
Natural Capital Assessment and Post-Consumer Waste Analysis for AMCOR.
Fleisher, C.S. and Bensoussan, B.E., 2015. Business and competitive analysis:
effective application of new and classic methods. FT Press.
Lehner, C., 2016. Evaluating a new plant startup in the rigid plastics packaging
industry. Pepperdine University.
Sadgrove, K., 2016. The complete guide to business risk management. Routledge.
Stasiak-Betlejewska, R. and Tuckova, Z., 2015. Technology parks as a tool of the
region’s Competitiveness Development. The determinants of competitiveness, p.143.
10
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