GMM! team project

The opportunity for TOMRA to enter the Peruvian market currently exists by meeting the underserved need of supermarkets in the area of Reverse Vending Machines. This will be justified as a market opportunity for TOMRA, because the microanalysis of the company provides evidence for success in this emerging market.

 

The current resources and capabilities of the company suggest that TOMRA has an adequately stable business to operate efficiently in the Peruvian market due to its existence in similar South American areas.

 

Actions taken in the Peruvian market may affect other global markets and therefore the company should follow the global mission and ensure that the actions taken are in the interest of the global company.

 

Within the current global market share dominance, TOMRA remains the leader in Reverse Vending Machines. This means that the company is in a position to look for growth and the Peruvian market provides opportunities for this.

 

MARKET OPPORTUNITIES include:

 

• Meet the needs of an underserved market and enter quickly to maintain first mover advantages and penetrate profitable segments.
   

• Cost saving in creating further economies of scale in production by growing the companies already existing South American market to Peru.
   

• Build strong relationships with suppliers and distributors early.
   

• Manage the new market in a similar way to psychically similar markets for example the operations of Chile.
   

• Potential due to the size of the market and therefore it’s potential for profitability and growth which is an opportunity for a growth focused company to excel.
   

• Continue to have competitive advantage by communicating the strengths of the company to potential customers.
   

• Focus on targeting growing environmentally friendly sectors (target countries where recycling is becoming an important government issue).
   

• Collaborate with customers to create innovation in product use to understand the needs of demand and further innovate product.
   

• Enter new markets with potential for growth especially in comparison to market size.
   

• Vertical market approach adding value by segmenting the supermarket retail industry.
   

• Add value through customer relationship building with retailers in the supermarket industry.
   

• Provide value through added long term ROI’s for supermarkets through the reverse vending machine product usage.
   

• Meet the needs of potential supermarket retailers in Peru by offering them a partnership which will in turn meet their customers needs.
   

• Help customers realise the benefits they can gain from using reverse vending machines (environmental efficiency, corporate social responsibility, ethical image, supply their final customers with a new motivation to shop specifically at their store).
   

• Company will gain value from entering a new market.
   

• Streamline the process of entering the reverse vending machine market for supermarkets by offering service strategies.
   

ADDED VALUE CONSIDERATIONS
 

Vertical market approach:

 

• Create value for TOMRA’s customers by offering goods and services specific to a certain segment in the industry of reverse vending machines. For example by targeting an industry such as supermarket retailers, TOMRA will be able to create specific value offerings relevant to those customers. By becoming a competitive player in the market of a particular segment TOMRA can utilise its information to target and position themselves towards this key area.
   

• Differentiate TOMRA’s products and services to meet the needs of specific supermarket retailers.
   

Horizontal market approach:
 

• Offer products and services to TOMRA’s general market including the global market at large.
   

• Not as specific as a vertical market approach at reaching the key industry needs of supermarket retailers.