Peak Sealing Technology: Case Analysis: Peak Sealing Technologies

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Peak Sealing Technologies (PST) headquartered at Dallas, Texas, is a manufacturer of premium carton sealing tapes. Technological Leadership, secure and efficient sealing solutions, and intensive R&D efforts has been a competitive advantage for the company.
It focuses on providing most innovative and high quality products to the customers. PST Brand -K2-tape is manufactured by using patented adhesive technology and high quality materials. It also uses polyester backing which results in very high tensile strength and tear resistance.

Some of the company’s values are mentioned under:
 Even with premium pricing, K2 products are competing overall cost by their remarkable performance.

 Its exceptional performance under wide ranging conditions,
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There were certain arguments against the production of economy tape by the company which are mentioned below:

 The company has to lower its brand value to be able to compete in down-market.
 They have to face price wars and this might reduce profitability of the company.
 They might get complaints from distributors and existing customers.
 Threat of substitutes in market as best quality is not always a priority for some customers as they are price sensitive.
 There will be loss of market share.
 Difficult to regain trust of existing loyal customers who expected high quality and performance when in competition with other firms in upper trade market.
 More competition in lower trade as other firms will try to convince that their product is better than K2-products.
 They will face even wider range of products.
 Being a high quality leader, it has to change its perception.

ANSWER-4

If the company extends its production line towards economy tape, they would have to lower the quality and reduce price to compete with other firms in that

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