ASSIGNMENT # 2

The industry I would like to present is Novatex which is the largest plastic manufacturing
industry in Pakistan. It is actually a B2B industry and its main customers are P&G, Unilever,
Nestle, Pepsi and Coca Cola in Pakistan. Beside this there are many automobiles and electronics
industries are the customers of Novatex. Its main competitor is Pakistan Synthetic Limited, but
despite this around 72% of market share of plastic products is in Novatex hands. Because they
work in a unique way and their main operational effectiveness is that they had diversified
themselves regarding to their products. They not only restrict themselves to produce only
single products but beside this they have linked themselves to the other product regarding to
the affiliated inputs for example Novatex not only produce preforms from their raw material
but they also focused themselves in producing pet resins, packaging sheets, bopet sheets,
polyester yarn, construction sheets and many other products, whereas its rival only stick to the
preforms. Not only that with the passage of time they were trying to adapt new technologies
and advancements so that they can match their pace with the current dynamics of the industry
like they have adapt SAP software so that they can be linked all the other department with one
another, because if they did not do so they might not be able to take proper decision on timely
basis.
Beside this Novatex not only stick to plastic manufacturing only but they also have diversified
themselves to the pharmaceutical sector also and they launched Davago with totally innovative
idea in a totally new way which was not given by any other B2C business as they are providing
free home delivery services. This gives Novatex competitive advantage than its competitor
because this kind of service has not been given by any other sector than before. So basically
through Davago Novatex has created a strategic positioning in pharmaceutical market.
In short currently Novatex focused on all the three ways of strategic positioning like through
Davago they are setting their way to enter in pharmaceutical market.
Not only that they are more flexible towards need based positioning like by producing polyester
yarn they are targeting textile industry, from bopet sheet they are targeting electronic industry,
through preforms they are focusing fmcgs and many others.
Currently they are working access based positioning by working on market segmentation by
opening different branches in different part of the so that everyone could reached them.
 Import raw
material from Do not over
major dealers cluster the raw
Being major exporter of
because they material
Pakistan their main aim is to
maintain their because it gets
maintain quality standards
quality contaminated
according to international
standard

Testing of
Research for every batch
other from the QC Minimize
suppliers Maximize lab. cost of
profit Holding

Timely logistic plan

Timely so that their raw
procurement plan material reached to
Timely production so that their market
so that they won’t their plant in the
customers won’t find alternative producers.
face shortage of assessed time like
inventory they maintain the
stock for 12 days so
it must be reached
before the plant
reached that

Timely production
plan so that the
export team deliver Proper
the finished goods Demand
to their customer Forecasting
Overhauling within the time
of plant on
yearly basis
so that their
operations
run smoothly