2. Technical/operational risks
1. Customers start demanding the company different kinds of packaging
For example: tube (easier to use, more portable), squeeze pouch (takes up less space, easier to throw away), rigid container (lid can be used to roll off excess paint from the roller), spray can (no brushes, etc. needed)
Contrary to some of its major competitors, Van Wijhe Verf only offers its paint products in cans (except for the Semppel, a paint tester in a small squeeze bag). It is a technical/operational risk since the company will have to adapt its whole production processes in order to be able to meet those demands.
It is likely that this risk will occur. Customers want to have different options, different possibilities. Once they…show more content… Financial risks
1. Further take-overs within the paint industry
Van Wijhe Verf is a relatively small and independent family business that wants to stay independent. In recent years, some of the company’s competitors have taken over each other. Up till now this has not lead to any serious problems for Van Wijhe Verf. However, any further take-overs within the paint industry might lead to Van Wijhe Verf being pushed out of the market. For example, because of the fact that due to limited and insufficient financial resources, the company is no longer able to compete with its ever-growing competitors.
It is unlikely that the major competitors of Van Wijhe Verf will continue taking over each other, since this may lead to unfair competition, which is strictly forbidden, not only in Europe, but also in the United States.
One of the biggest reasons why companies decide to take over competitors is to generate more resources. By taking over competitors and combining resources, companies try to stay ahead of the competition. Those take-overs might lead to small companies like Van Wijhe Verf to be pushed out of the market. Therefore, the possible consequences of further take-overs within the paint industry can be categorised as