?2.3 SWOT Analysis, Part 1: Opportunities and Threats ULMA Packaging needs to consider the following opportunities and threats within the UK packaging and manufacturing sector before investing in this market. Opportunities: International demand for packaging machinery is predictable to rise by 4.7% annually through 2014; US-manufactured equipment is perceived as being poorly adapted to the UK, which gives the European technical standards an edge; Favourable fixed investment environment worldwide; Developments in the global market for packaging equipment; Demand for packaging machinery in food market is growing. Threats: Overcapacity through cost reduction; Exiting unprofitable businesses; Present competitors, including domestic, German, and Italian suppliers, occupy well-established market positions and have sunk costs in creating brand awareness; Tough penetration rates of primary packaging machinery brands in the UK installed base direct to synergies for future purchasing and bargaining. 2.4 Competitors analysis: Source: WPO, 2008. Any new company that seeks to establish itself in the UK manufacturing and packaging sector faces tough competition from two main groups of competitors: A. Domestic producers; B. German producers. Domestic producers: The UK’s own suppliers maintain a very dominant position due to several reasons. One of the reasons is that they enjoy a long-standing relationship with their customer, which gives them an opportunity to react better than their competitors. Furthermore, they have an edge as they share the same culture and language, which helps them further in the process of decision-making, servicing, and technical assistance. Most importantly, the government’s inclination towards ‘buying British’ helps these companies to expand and invest on a better scale. Additionally, with a better access to local suppliers, these manufactures tend to come up with more efficient, faster, and customized solutions, which give them a competitive edge (De Mooij, 2011). German producers: On the other hand,the German packaging machinery suppliers have successfully established a strong reputation in global markets. They incorporate their market reputation for greater engineering abi