Sullivan Container operates both new industrial steel barrel production and the reconditioning of industrial steel drums and plastic containers in several locations in the United States. The firm operates 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 of 2009, the firm continued to pursue sustainable practices, but now faces growing investment costs for sustainable practices.

General Manager Paul Johnson has hired you as a team of consultants to analyze Sullivan Container's business model in terms of sustainability practices, value creation, and customers Willingness to Pay. It is your task to present to Sullivan Container's senior management team a strategy that will increase the company's sustainability while driving its competitiveness in the industry.

1. Given the industry history, how will building sustainable practices into Sullivan's business model influence a customer's willingness to pay?

2. Propose a plan for how Sullivan could increase its competitiveness. Be sure to include a discussion of a marketing plan, as well as the exploration of new sustainable practices.

3. What are the costs and benefits to your proposal?