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Tetra Pak versus Greatview: the Battle Beyond China  
Product Ref: 12/515C Company: Greatview Aseptic Packaging Co. Ltd.
Tetra Pak

Product Type: Case Industry: Materials

Related Product(s): Teaching Note
Authors: Zhigang Tao   Rebecca Chung
Tetra Pak, the world¡¦s largest manufacturer of aseptic packaging materials, is a typical market leader that faces growing challengers around the world and runs the risk of becoming embroiled in antitrust cases. Greatview Aseptic Packaging Company Limited (¡§Greatview¡¨) is an exemplary Chinese national champion that penetrates into developed markets, which are usually saturated with only a few key players. The case describes how Greatview emerged and challenged Tetra Pak, which set industry standards largely by using the tying and bundling strategy and the innovation and patent strategy. Since 2003, Greatview has actively influenced the Chinese government to establish and enforce an antitrust law, which supports the company as it positions itself as the best alternative to Tetra Pak for reducing customers¡¦ single-supplier risks and costs. In 2011, Greatview announced the building of its first overseas plant, in Germany, to penetrate into Tetra Pak¡¦s home market of Western Europe¡Xthe world¡¦s largest market for aseptic packaging. In 2013, although Greatview announced ambitious factory expansion plans, its challenges overseas are huge. Meanwhile, Tetra Pak realized that its European patent was not able to protect its historic innovation, aseptic technology, from being imitated. Even more complicated, the State Administration for Industry and Commerce, China¡¦s market regulator, launched a national investigation against Tetra Pak, accusing it of misusing its dominant position to limit competition. Both companies need to devise their next competitive moves.

This multifaceted case is about how the changing legal environment of a business opens a door for a Chinese rival of an innovative worldwide-market leader, and hence pushes the leader to rethink how it competes and grows, especially in terms of innovation. The case also explores whether an emerging-market multinational company should replicate competitive strategies that have made it successful in its home market when it strives to compete in developed markets, and how innovation can support its international expansion.
Functional Area : Economics & Business Policy
Strategy & General Management

Learning Objective: 1. To provide program participants with a basic understanding of the competition policy and antitrust laws in China, as well as insights into how to navigate through the complexities and confusions at the intersection of patent law and antitrust law under an uncertain regulatory regime in China and diverse legal systems worldwide.
2. To discuss the precautions associated with the innovation and patent strategy, as well as the pitfalls of the tying and bundling strategy.
3. To explore how a market leader can defend itself against its challengers using competitive strategies that fit the external environment.
4. To explore whether competitive strategies, which have made an emerging-market firm successful in its home market, are replicable and sustainable in developed markets.
5. To experiment with innovation as a competitive strategy.
Length: 19 pages Country: China (People's Rep. of)

Pub. Year: 2013 Level of Difficulty: 3
This product type is available in the following language(s):      English
Related Information: N/A
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