Question

Hello Tutor,

I have a presentation on my supply chain class regarding the ability of Reynolds holding group to forecast accurately the demand.

i would like help on :

-The Five porter's force for Reynolds holding group(the packaging Company)

-The responsiveness of their supply chain ( Please explain why you think they are responsive or efficient)

-And their zone of strategic fit.

Please elaborate as much as you can with details/ figures...

Thank you very much.

Answer 1

Reynolds Holding Group (a packaging company) is the pioneer company in manufacturing aluminium foil, metal packaging, plastics and other packaging materials. The company is quite successful in its business since long years.

Five Porter's Force for Reynolds Hlding Group

• Threat of Competitive Rivalry : Reynolds Metals Company is the second largest aluminium company in the United States and the third largest in the world. The compnay has an established brand name in the field of aluminum foils and has achieved economies of scale in production. There are so many competitors in the market as TetraPak, Amcor, Alpla, Ball Corporation, Bemis etc.So the threat of competitive rivalry is high.
• Threat of New Entrants : Threat of new entrants is low as the compay has established a brand name and achieved economies of scale due to high level production. New entrants would not be much interested in the industry dominated by existing players.
• Threat of Substituents : Threat of substituents is always high in this industry. As the governmnet has banned the single use plastic usage, so the companies need to see for the substituents. Any firm coming up with eco friendly packaging have an added advantage and would lead.
• Bargaining Power of suppliers : Bargaining Power of suppliers is low. As Reynolds Metals began mining bauxite in Bauxite Arkansas in 1940 and thus went for backward integration. So the suppliers bargaining power is low due to possibility of backward integration.
• Bargaining power of Buyers : Bargaining power of buyers is high as there are many competitors in the market and each buyer has become quite vigilant to look for eco friendly packaging materials.

Supply Chain of Reynolds Metals is quite responsive in terms of making it more efficient and achieving better baragaining power. The company Reynolds Metals began mining bauxite in Bauxite Arkansas in order to avoid any dependence on suppliers and to make its supply chain more efficient.

Zone of strategic fit

The company Reynolds Metals supply chain is quite responsive as they meet the requirements of their customers promptly but the demand is not certain as the customers are now looking for more eco friendly packaging due to growing vigilance amongst the customers.

Refentive Suffly Chain Restensiveness Settecum Sebrategia Lone e efficient Supply Chain Certain Demand Implied Uncertainty Spectrum Uncertain Demand