What to Do? Morel wondered how the rumored entry of Zakretka into Chile would impact Inspiral, so he asked Anna Ruiz, his associate, and Luis Garcia, the Maipu plant manager, for their opinions. Ruiz replied that if Zakretka were to build in Chile a plant like the one in Warsaw, the Polish company could drive Inspiral out of business. Therefore, she said, Inspiral should change its operations strategy by not waiting to see if Zakretka could replicate the Warsaw plant in Chile. She urged proactivity by changing Inspiral's operations to match Zakretka's. Garcia looked doubtful and responded that it wouldn't be easy for Zakretka to replicate its Warsaw plant in Chile. In fact, he thought the Polish company's new plant would have to be different if it were to offer custom caps. He noted that Inspiral had been estimating the cost of custom screw caps to Zakretka. Based on that analysis, Garcia said, Inspiral should identify specific proactive improvements the company could take. (See Exhibit 8 for the cost indices of plants in Chile and in Poland.) This would mitigate the threat of Zakretka-and might even discourage the Polish company from building a plant in Chile. Garcia recommended to Morel that Inspiral should look at its plan before considering a radical change to the company's strategy