Tetra Pak competitive advantages free essay sample

Introduction Tetra Pak started in Lund 1951 of the founder Ruben Rausing. Tetra Pak is a multinational world leading enterprise with products as; food processing and packaging solutions provide more than 170 countries around the world.(Tetra Pak, 2013) Tetra Pak’s motto is â€Å" PROTECTS WHAT’S GOOD’’ which means to protect the food in the packages from supplier to customer, distribution, employees, consumer and society. Another thing that is important for Tetra Pak is to protect the environment by using renewable material as the main component of their packages such as wood fibre.(Tetra Pak,2013) In the 1960th Tetra Pak developed a sterilization technology which made it possible to distribute safe and nutritious liquid food to all corners of the world without the need of a cooling chain.(Tetra Pak,2013) New trade theory Without trade a small national market will not keep economies of scale with the low demand. By world trade production of a certain product will help each nation to specialize. We will write a custom essay sample on Tetra Pak competitive advantages or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Economies of scale is a cost advantage that emerge when a company increases output of a product(Hill, 2012 p.194 ­195). When Nation trade with each other the market expands and this leads to economies of scale may be able to attained and lowers the cost for company production and for consumers. Nation trade enhance the variety of goods and this leads to a decrease of the average cost of those goods.(Hill, 2012. 194 ­195).