AMJAD TAMEEM KHAN
BUS 202 (Section 2): MANAGING IN A GLOBAL ECONOMY
DR. MAHESH RAJAN
HARVARD BRIEF CASE:
LOGOPLASTE:
GLOBAL GROWING CHALLENGES
Logoplaste, a company founded in 1976 by Marcel de Botton and now run by the CEO
team of son, Filipe de Botton and Alexandre Relvas. The company under this pair has
grown from what was a small container company in Portugal controlling a few plants to
the top 10 rigid plastic container manufacturers in the world. Logoplaste has had
tremendous growth over the past 15 years and mainly due to its extensive expansion
strategies, it’s been able to maintain a CAGR (Compounded Annual Growth Rate) of
15.4%. In view of its articulate growth plans by 2010 they owned 60 plants in as many as 5
continents. Logoplaste had sales of about €300 million largely due to its large
multinational clientele such as Coca-Cola, Heinz, Proctor & Gamble (P&G), Unilever etc.
With the increase in acceptance of plastic throughout the world as a more safer and a
durable alternative to metal, steel etc. the rigid plastic container industry was poised to
grow at 5-6% annually while the overall container and packaging industry grew at just
over 2%. Keeping these facts in mind it is vital that if Logoplaste wants to see continued
growth and success and also wants to show similar growth rates in future it must also come
up with viable strategies for growth. Starting with Logoplaste’s method of business, which
advocated and practiced the “hole-in-the-wall” concept (on-site service focused towards
decreasing transportation costs and increased customizability for clients) to perfection with
customer centric, decentralized and “Just In Time” services to the clients. The company is
known for its well-documented and drafted clauses that give prime importance to
customers whilst always maintaining a win-win situation for both parties. A few strategic
options for further growth are discussed with the feasibility of each. To begin with,
Logoplaste has been enduring increased pressure from its multinational clientele to
become bigger. It can counter this by entering new markets where there is already a
presence of these multinational companies, so Logoplaste can cater to the customer’s
needs in a better fashion. Keeping toe to toe with the clientele’s demands of continuous
cost reduction, Just In Time deliveries, consistent and perfect quality of products it is
imperative that they move to newer markets. But one main issue with this growth strategy
is Logoplaste is no more a small supplier hence it is exposed to market competition and
