The Porters Analysis of FP CORPORATION JAPAN
Tri Mahar Lazuardi - 120820150519 Muhamad Haris - 120820150536
FP Corporation Established July 24, 1962, with Morimasa Sato as Chairman and CEO, President and CO with Capital 13,150 million yen and Settlement Date March 31 Number of Employees795 employees (FPCO Group: 4,332 employees), the Headquarters Fukuyama, Shinjuku, the main business is Manufacturing and marketing of disposable food containers made of polystyrene and other compound resins, and the Main Clients Mitsui & Co., Ltd.Sekisui Plastics Co., Ltd.DIC Corporation Toyota Tsusho Corporation AEON Co., Ltd.Kohsoku Co., Ltd.Marubeni Plax Co., Ltd.Japan Polypropylene CorporationK.K. Shizuoka Sangyosya Inc.Yoneyama Corporation Koyoshoji Corporation Kyoei Co., Ltd.
the porter’s analysis begin with The threat of new entry, the time and cost of entry, FP CO Japan not an early business and easy settle. The company established at 1962 and it took years to be like now with all over relation and business link. The company has 18 production plant and widespread around Japan. As the grown business FP CO proofed that it’s not easy to begin that business, beside the time that took to build, the cost of the business mainly shared at investment of the machines and the production line as the capital. One of the recyling machine reported that cost 1 billion dollars. At this point FP CO is hard to defeat for the new entrance. By the eyes of Economies of scale, FP CO can reduce the cost of production, because all the material and resources is free and 100% production efficiency of the material since there is nothing left to be produce. The annual report of FP CO indicates that it has Cost of advantage, as the financial report graphic shown, that sales are gain up in every 3 months. Another line said that the capital that spread along Japan has the maximum of capacity. FP CORPORATION may wins from the threat of the new entrance, the data shown that in every view like technology and knowledge, FP CO really hold the sword. Technology that used to product has 100% of reuse recyce and green environment, so it reduce of cost of product
and gain up the revenue stream.
Another point the 6 forces is about Competitive rivalry. FP Co is a part of Oligopoly market, since there are the many Corporation that produce food tray as the rivalry like Maruzen CO.LTD, Panjiva LTD etc, this maybe the threat that can conquer the marketshare. FP CO has many company as the link as a supplier and sales and gather into group companies so it can helps much more to make the business sustain among the rivalry.
in Containers and Packaging in 7/3 2016. The process of production at its best the chain are recycling manufacturing distribution sales and product development that is make the FP CO reach the 100% efficiency. And it also because the FP CO is the leading of technology in recycling
After we took review about the threat of new entrants, we
analyzed that FP CO had better performance than the
rival, so the power of the threat of new entrance we suggest at low level.
The FP CO suppliers are mainly from department stores, whole sales, retail stores and the supply is all free. Since the supply was a trash that can’t be acceptable for the environment, so the supplier sent it to recycling plant that could handle it. At the eye of the suppliers, the FP CO is a good choices because the recycling plant is all over Japan and the winner of leading recycling technology. As we heard that the suppliers and the FP CO connected in only supplying free trash, so if there’s a chance for another company that could have more valuable cooperation with the suppliers, the supply may decrease and somehow affecting the cost of product. So we suggested that FP CO maybe can make a valuable cooperation with the suppliers to make a great bound.
The power of buyer for this company can be analyzed based on the number of customers, differences with the competitors, price sensitivity, cost of changing, and the ability to subtitute.
As well as the products the FC CO manufacture themselves, FPCO Group also procures and sells packing materials and consumables such as shopping bags and plastic bags, wraps, and chopsticks. FP Trading Co., Ltd. handles more than 100,000 types of packing materials and comprehensive solutions related to selling spaces, distribution, and recycling. This approach to sales activities has evolved into our proposal-based sales activities. We make proposals with our food containers to resolve ongoing issues facing food sales operations. They sales activities is apporaching to the customer from making a fair and exibhition until co creation sales. This type of sales is strengthten connection to the customer that has point to gain up the total sales.
Giving suggestions on the production of selling spaces is a means for directly communicating with supermarkets and other retailers they serve. They are pushing ahead with the co-creation sales approach, based on which the production of food selling spaces and market cultivation are conducted in collaboration with food manufacturers and vendors, such as the producers of prepared food and boxed meals. This approach aims to create and propose more appealing products by combining the appeal of FP Corporation’s products with that of merchandise, specifically food, from manufacturers and vendors. For example, products from salad dressing and other food products manufacturers are combined with pre-cut vegetables from vendors. We then propose emphasizing the freshness of food materials and a mouth-watering flavor of the dressing packaged in our highly transparent container. These suggestions release supermarkets from the hassle of conducting surveys on hot items and selecting food materials and containers. As a result, busy supermarket personnel will be able to immediately display attractive items delivered by vendors on selling spaces without any trouble. We additionally propose the production of selling spaces for dealing with these items. This sales approach offers significant advantages to customers in their sales and operations and also advantages for the company to sell
delivering them to the clients when they need them. The price is still affordable to the costumer, and competitive with the rivals. The FP CO is the winner with superior products that delivered to customer with cost of production and 100% efficiency.
The market may shared with the rivals, but the customer not into really sensitive about the price war, the financial report showed that the FP CO is in the best position of pricing the products.
The threat of subtitution is come from the customer whom change the tray with another type product or material. Japn has many culinary culture that keep the freshness and good appearance of the foods. The type of packaging is the mainly concern nowadays. The FP CO established by the needs to make the food packaging compact ang low cost.
The type of plastic and styrofoam based still the best for todays food packaging. The FP CO may lose the chance is theres a material that can defeat both plastic and styrofoam. The product development is part of a good governance production. The FP CO applied it and has reasearch in years about the shapes and the materials.
The plastic and styrofoam is still the best materials, the cost, the easy to product and the lightweight is the three concern. So the subtitute product may not asignificant issue now.
Another point is the stakeholder that have a rivalry matters. The FP CO build connection and link customer, another companies and group and government. The rivalry among the stake holder is low, the FP CO come together with the Government make a program about environment called recycling society. So the retail customer, the citizen and the government hold together to make a recylce society that divide the type of trash, reuse thing that possible and support the recycling plant.
