Guna sekhar 2023001917

Inspiral: A Contrast
in Operations
Strategies
The director of the Tapa Rosca Inspiral screw cap company, Eduardo Morel,
expressed concern after learning about the Zakrętka Group's plans to build a new
plant in Chile. The success of Zakrętka in Poland had not yet translated to the
South American market, but the business report indicated that this circumstance
could change. Morel sought to analyze the potential impact on Inspiral's
operations and prepare a proactive plan to mitigate any threat posed by the new
Polish plant.
The Screw Cap Industry
Mechanical Devices
Screw caps are mechanical devices used to
seal containers and preserve their contents
by providing a barrier to outside
contaminants. They offer an alternative to
cork for sealing wine bottles.
Materials
Screw caps can be made from various
materials, including metal (mainly
aluminum), plastic foam, and cork or
rubber. Aluminum is the material of choice
for wine bottles due to its practicality and
ability to reduce wine oxidation and cork
taint.

Industry Usage
Companies in various industries use screw caps, each with different material and specification
requirements. The wine industry, in particular, has seen significant growth in the use of screw
caps.
The Screw Cap Trends
The Wine Industry
1 Global Production
Main wine producers are located in Europe, South America, and North America. Italy, France,
Spain, the USA, Argentina, and Chile account for about two-thirds of the total worldwide
production.

2 Market Trends
The global market for metal caps and closures is expected to see a compound annual growth rate of
5.2%. Screw caps have shown the highest growth in the wine industry since 2004.

3 Customer Preferences
Vineyards tend to have different suppliers for screw caps, with large vineyards negotiating long-
term contracts and smaller vineyards preferring custom-produced designs.
The Zakrętka Group
Company Background
The Zakrętka Group is an international leader in the production of aluminum closures
for spirits and wine. Its main facility in Warsaw is known for continuous business
development and technological innovation.

Competitive Strategy
Zakrętka's competitive strategy is based on efficient manufacturing processes and
close relations with aluminum companies in Europe. The company excels in adapting
designs for different market segments.

Operations Strategy
The heart of Zakrętka's operations is its Warsaw plant, which focuses on high-volume
demand and efficient manufacturing processes with minimal waste.
The Warsaw Plant
Operations Strategy
The Warsaw plant focuses on high-volume
demand and produces huge batches,
operating on a continuous, 24/7/330 basis
to minimize start-up and shut-down costs.
Process Design
The plant's streamlined operation with
almost zero waste is achieved through a
well-coordinated and synchronized process
design, minimizing materials handling.

Products
The company strategy emphasizes economy in raw materials, resulting in less manufacturing
complexity and longer production runs.
Inspiral
1 Company Evolution
After rebranding in 2018,
Inspiral focused on high-
quality products
manufactured to customer
needs, with custom-made
orders representing 70% are
multi-year contract of the
company’s total production
volume.
2 Operations Strategy
Inspiral configured its
operations to emphasize a
value proposition that
included a wide product
variety based on each client’s
needs, focused on speed and
timeliness of service delivery,
and highly responsive
technical support.
3 Market Presence
Inspiral's demand for screw
caps was highly concentrated,
with the company’s five main
customers representing almost
80% of its total.
Total market share of 55% of
wine sector.
The Maipu Plant
1 Production Capacity
The Maipu plant started with an annual capacity of 340 million screw caps and
expanded to reach 600 million screw caps per year, with the excess capacity to
provide quick customer response.

2 Product Portfolio
The plant's portfolio includes over 500 screw cap variants, accommodating several
types of screw caps for wine, water, and spirits bottles of varying sizes. They have 32
standard colours with three categeroies Premium tin, Prestige and Basic.

3 Customer Focus
The demand for Inspiral’s caps was highly concentrated, with the company’s five
main customers representing almost 80% of its total. They regularly alter production
schedule to serve customer needs
What to Do?
Proactive Strategy
Anna Ruiz suggested that Inspiral should
change its operations strategy proactively
to match Zakrętka’s, while Luis García
recommended specific proactive
improvements to mitigate the threat of
Zakrętka.
Strategic Analysis
It was debated whether Zakrętka's
potential entry into Chile would impact
Inspiral, and the need for a proactive
approach to address the situation was
emphasized.
Operational Response
There were differing opinions on how
Inspiral should respond to the potential
threat posed by Zakrętka's entry into the
Chilean market.
Market Analysis
1 Global Market Trends
The global market for metal caps and closures is expected to see a compound annual
growth rate of 5.2%, with screw caps showing the highest growth in the wine industry
since 2004.

2 Customer Preferences
Vineyards tend to have different suppliers for screw caps, with large vineyards
negotiating long-term contracts and smaller vineyards preferring custom-produced
designs.

3 Operational Flexibility
Inspiral's Maipu plant maintained excess capacity to provide quick customer response
and in anticipation of longer-term forecasted growth in demand.
Conclusion
Strategic Planning
The potential impact of
Zakrętka's entry into the
Chilean market prompted a
debate on the proactive
measures Inspiral should take
to address the situation.
Operational Response Market Analysis
Differing opinions were An analysis of the global
expressed on how Inspiral market trends and customer
should respond to the preferences highlighted the
potential threat posed by need for Inspiral to adapt its
Zakrętka's entry into the operations strategy to remain
Chilean market. competitive.
THANK YOU