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Signode was able to maintain its leadership by offering more services than any of its competitors but it was doing this at a high cost to its profitability. Signode had the highest share and the highest average price in the industry, it differentiated itself from its competitors by offering special grade strapping and providing service which the competitors were not providing but times were changing and their was a paradigm shift in so much as the quality of strapping offered to the market was now equal for all competitors. The strategy of its competitors was to price their strapping at a consistent discount to Signode and although their products were undifferentiated they were soon breathing down heavily on Signode?s neck ? because the change in the business environ was to appreciate price discounts above service...
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