Plastics Markets Competitive Intelligence
Understanding the strengths and weaknesses of your competition can have a major impact on the profitability of your organization’s plastic processing operations. If, for example, a customer is telling you that they have a lower priced offer from one of your competitors it is important to objectively determine whether such a competitor truly has the ability to price at such levels for the long-term. If the competitor is a high cost producer in your segment of the plastics processing market then it will simply not be possible for them to price for any extended period of time below their marginal cost of production—no matter what they promise the customer. Alternately, just because a competitor is offering what your organization considers to be unreasonably low or even “impossibly low” pricing it does not necessarily mean that their pricing is truly “impossible” and good plastics market competitive intelligence could help you to understand how your competitor may be able to offer such prices.