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- Teaching & the Case Method
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Sullivan Container
內容大綱
Sullivan Container operated both new industrial steel barrel production and the reconditioning of industrial steel drum and plastic containers in several plant locations in the United States. The firm operated in an industry with a checkered past, characterized by periods of price fixing and environmental problems. A new management team acquired the firm in 2007 and began revamping manufacturing practices and focusing on environmentally sustainable practices. Faced with the severe economic crisis in 2009, the firm continued to pursue sustainable practices, but now faces a critical question as investment costs in sustainable practices increase. The key question we explore is: Given the industry history, will build sustainable practices into their business model drive a customer's Willingness to Pay? The case allows students to explore the challenges of creating a Willingness to Pay for aspects of value creation that may have no immediate positive effect on their customer's internal operations.