PPC
Pivoting In Times Of Change: A Packaging Company’s Drive Toward Sustainability
Project Type
Innovation
Business Model Design
Research & Audits
Source: https://ppcksa.com
Challenge
PPC is a leading manufacturer of disposable plastic products in Saudi Arabia that uses the latest technology to produce high quality, specialized packaging for a wide range of sectors across the MENA region.
PPC’s business strategy focused on competing based on outpricing its competitors. To differentiate itself against other players in the industry, PPC wanted to go beyond operating on a red ocean, winner takes all strategy and move towards a blue ocean approach, finding a niche to bring an added value to the market.
Intervention
Rethinking PPC’s strategy and proposing new innovation routes required three main courses of action: carrying out an internal audit of the company; analyzing its existing model and resources; and assessing the market and socioeconomic milieu in which the company operates.
We began by auditing the company’s existing position in the market, company culture, strengths, weaknesses and opportunities for innovation. Stakeholders were interviewed to understand the company’s vision, capacity, market and operations, while we spoke to PPC’s existing clients to gain insight on the commercial and industrial packaging industry.
We assessed the food packaging industry and identified the latest trends to see where PPC was integrating them and where it was falling behind. We also did extensive research into the latest social and environmental changes to gain insight into the market and consumer behavior in terms of purchasing habits and preferences to assess how it could impact PPC’s business.
Results
To help PPC adopt a Blue Ocean strategy, We identified the infrastructural changes needed to achieve a leap forward in value for both the company and its clients. With the aim of working up the ladder of innovation, we focussed on tackling innovation in different areas of the business, including products and services, operational processes and the business model.
For every route towards innovation that we proposed, we identified the requirements, benefits and challenges and developed business model canvasses that took into consideration variables such as revenue streams, cost structure and key resources.
To facilitate the decision-making process for picking the innovation routes that the company would pursue, we developed a weighted matrix that considered certain metrics according to the vision of PPC’s board members.
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