Case Scenario 2: Plasco

question 55

Essay

Case Scenario 2: Plasco.
Plasco is a $3 billion U.S.-based manufacturer of flexible plastic products like trash cans, reheatable and freezable food containers, and a broad range of other plastic storage containers designed for home and office use. Historically, Plasco has been the category killer for most of its products and has devoted tremendous resources to new product development on an ongoing basis-this research intensity has allowed the company to release, on average, a new product every day over the past 5 years. Despite its past strength and high brand awareness, Plasco's profitability has been eroded by dramatic increases in the cost of plastic resin, the primary input into its plastic products. Moreover, the retail channel has experienced rapid consolidation resulting in a shift in the balance of power from branded manufacturers like Plasco, to strong retailers like Walmart, who in turn have been unwilling to help Plasco absorb the higher resin costs. Enhancing Walmart's power is the fact that it can always turn to alternative high-volume sources of consumer plastic products like Sterlite. Further hampering Plasco's recovery is the emergence of feisty little foreign competitors like Zig Industries, a $250 million Israeli firm that has begun to take part of Plasco's market share in plastic toolboxes. Ironically, Plasco was the first company to offer plastic toolboxes some 20 years ago. This innovation changed the market dramatically and Plasco's first mover strategy rewarded it with a rapidly growing new segment and a dominant market position. Today, Plasco's toolboxes are viewed as rather boring, while Zig's products are ingeniously designed to catch the customer's eye in the aisle (better merchandising the product)and capture their interest (and pocketbook)with many new and novel features. Zig is also able to provide this new line of toolboxes at between 10 percent to 15 percent less than Plasco.
-(Refer to Case Scenario 2). How can a small player like Zig be such a successful competitor against a large,established firm like Plasco?

Utilize appropriate statistical tools to improve process understanding.

Implement strategies for process improvement and capability analysis.

Understand the significance of sample size and sampling frequency in process monitoring.

Interpret the implications of out-of-control signals and take corrective actions accordingly.

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Definitions:

Empirically Tested

Refers to methods, theories, or measures that have been tested through empirical research, involving observation and experiment.

Piaget and Vygotsky

Prominent theorists in developmental psychology, Jean Piaget is known for his theory of cognitive development, while Lev Vygotsky is famous for his theory on social development and the concept of the Zone of Proximal Development.

Reading Instruction

The process and methodologies used to teach individuals how to read, including phonics, word recognition, and comprehension strategies.

Whole-language Approaches

Educational methods that focus on understanding and using language in its entirety rather than breaking it down into its components like phonics.