- Term Papers and Free Essays

X-Culture Report Plastic Revolutions Section 4

Essay by   •  December 19, 2016  •  Case Study  •  2,032 Words (9 Pages)  •  1,253 Views

Essay Preview: X-Culture Report Plastic Revolutions Section 4

Report this essay
Page 1 of 9

Section 4: Market Analysis

Based on the chosen market success criteria we selected 4 countries respectively regions that met these criteria in a sufficient way to be considered suitable way to be considered candidates for a market entry. Namely California (U.S.), Japan, Canada and Norway.


In the state of California there are currently 60 [a]manufacturing companies using recycled plastic as feedstock. Most of them manufacture eco-sustainable products and stress upon the eco-friendliness of their offer. Alongside with other possible advantages, this makes California a suitable candidate for further investigation.

Infrastructure and location[b]

California’s transportation systems consist of an extensive network of freeways and roads, which eases the transport of PRI’s products via Trucks. In addition to that California has a well distributed and maintained infrastructure regarding rail, sea and air transport.

Despite the increasing pressures on the transportation system, due to the increasing population, California is overall well connected to the main American cities and might thus be feasible to ship PRI products, preferably by truck or by plane, depending on the costs.

Trade Regulations (Government Policy)

Regarding trade regulations PRI would be in the favorable situation of operating in its home country.

Customer preferences & tastes towards packaging (and marketing)

The state of California shows the highest recycling laws in the US, this is fostered by tough waste diversion quotas and recycling laws. Those laws include the reduction of landfill shipments, bans of disposable plastic bags and ambitious waste reduction goals[1]

Therefore, California seems to represent a good match given the recycling oriented mentality of citizens and the incentives and regulations adopted by the government.

Competitive Environment

There are currently 74 companies [c]selling plastic #1 and #2 in the entire state, which makes the competitive environment in California relatively high.

Alongside the competition there are other factors threatening the plastic recycling industry in California. The instability of commodity (plastic, petroleum) prices is exposing California’s recycling system to many forced closures. Those low prices for scrap are driving many recyclers out of business and would lead to increased price pressure on PRI. Furthermore, the incentive system is getting problematic as more and more people are recycling and less money is available to finance recycling businesses. However, the problem is somehow extended to the whole USA[2].


Infrastructure and location

Japan possess a both advanced and well-maintained infrastructure including extensive and modern road network consisting of 1,152,207 kilometers (715,981 miles) of highways and a modern and a reliable, fast and extensive railway system (23,670 kilometers (14,708 miles))[3]. Which would make the transport of PRIs products within the country fast and easy.

However, the headquarter of PRI and Tokyo are more than 11,000 km (6800miles) apart[4]. And are located on opposite coasts which would either require the transport to the we-coast of the US by train, or Trucks or making use of the Panama Canal. Both of which would require huge transportation costs compared to the current operations.

Trade Regulations (Government Policy)

Japan is currently the 4th largest U.S. goods trading partner with goods and private services traded estimated as high as $290 billion in 2012 (latest data available).

Japan’s tariff being on average one of the lowest in the world at approximately 2%[5], would facilitate PRI trade with Japanese customers.

Customer preferences & tastes towards packaging (and marketing)

Because of the lack of space for landfill due to crowded metropolitan areas, Japan has had a natural interest to pass several recycling laws to address the disposal and treatment of plastic waste.

Japan’s plastic recycling rate is 77%, which is well above the 20% figure for the US, which still depends largely on landfill.

Despite producing on of the highest amount of waste in the world (52.36 million tons), recycling rates are very high, which implicates both, a high priority for recycling and the need of (recycled)-plastic in their industry.

Competitive Environment

Japan, an economic powerhouse with more than 125 million inhabitants represents the world’s third largest market and about 10% of the world’s economy. It is a major innovation hub with more than 25% of the world’s high tech products and 30% of cars produced. PRI is ISO Certified, what would make them able to produce certain plastic parts for the Japanese car industry.

All this would make Japan a promising market for PRI. But on the other hand, local Japanese companies are very strong and usually are not likely to welcome new markets entrants but develop strategies to compete hard[6]. So, entering Japan there is a lot to win but also a lot so loose.


Infrastructure and location

In general Norway possess a well-developed and maintained infrastructure with shipping as a vital component of its transportation system.

However, Norway is facing due to its harsh climatic conditions and geographical distinctions some issues regarding transportation. Railroads are only located in the southern part of the country whereas most of the northern regions are accessible only by ship, car, or aircraft. Furthermore, its serve northern climate in combination with natural barriers such as high mountains and fjords is making transportation hard during the winter months. So depending on which part of Norway has to be supplied there might be some issues regarding transportation and supply chain disruption for PRI especially during the winter months.



Download as:   txt (14.9 Kb)   pdf (108.3 Kb)   docx (17.3 Kb)  
Continue for 8 more pages »
Only available on
Citation Generator

(2016, 12). X-Culture Report Plastic Revolutions Section 4. Retrieved 12, 2016, from

"X-Culture Report Plastic Revolutions Section 4" 12 2016. 2016. 12 2016 <>.

"X-Culture Report Plastic Revolutions Section 4.", 12 2016. Web. 12 2016. <>.

"X-Culture Report Plastic Revolutions Section 4." 12, 2016. Accessed 12, 2016.