Gunns Case Study
Executive Summary – Industry Environmental Analysis
The Pulp and paper manufacturing industry is very competitive but typically is controlled by several large companies around the world. The domestic industry holds tight competition, however, international firms hold a competitive advantage with state of the art technology in pulp processing. Globally, the popularity of web-based media has risen and is causing a decrease in newsprint, while recycled paper is usage is increasing due to environmental sustainability. The position in Tasmania gives the suppliers bargaining power as they are based in Victoria and South Australia in which many of the other predominant firms are located centrally in Australia. International Trade decreased when the Global Financial Crisis occurred, although, while there are more efficient firms based in other countries, Australian firms are going to find it hard to penetrate the market.
The stringent environmental conditions of the forest stewardship council that companies in the industry are now required to meet, add to manufacturing costs. Technology has developed significantly in the industry particularly in other countries such as China and Brazil as governments are supporting these firms with additional funding. The support of the State and Federal government’s for the mill have been instrumental however, to lose this support would be detrimental to its success as there is a great deal of public protest. Social Trends such as production processes are becoming prominent while higher minimum wage and health and safety laws will increase production costs for firms.
Industry Environmental Analysis The pulp and paper manufacturing industry is a highly competitive market in which few countries hold the majority market share for the industry. There is a different operating environment from the initial opening stage of the mill as the Australian dollar has risen, a Global Financial Crisis has occurred, environmental
The Pulp and paper manufacturing industry is very competitive but typically is controlled by several large companies around the world. The domestic industry holds tight competition, however, international firms hold a competitive advantage with state of the art technology in pulp processing. Globally, the popularity of web-based media has risen and is causing a decrease in newsprint, while recycled paper is usage is increasing due to environmental sustainability. The position in Tasmania gives the suppliers bargaining power as they are based in Victoria and South Australia in which many of the other predominant firms are located centrally in Australia. International Trade decreased when the Global Financial Crisis occurred, although, while there are more efficient firms based in other countries, Australian firms are going to find it hard to penetrate the market.
The stringent environmental conditions of the forest stewardship council that companies in the industry are now required to meet, add to manufacturing costs. Technology has developed significantly in the industry particularly in other countries such as China and Brazil as governments are supporting these firms with additional funding. The support of the State and Federal government’s for the mill have been instrumental however, to lose this support would be detrimental to its success as there is a great deal of public protest. Social Trends such as production processes are becoming prominent while higher minimum wage and health and safety laws will increase production costs for firms.
Industry Environmental Analysis The pulp and paper manufacturing industry is a highly competitive market in which few countries hold the majority market share for the industry. There is a different operating environment from the initial opening stage of the mill as the Australian dollar has risen, a Global Financial Crisis has occurred, environmental
References: Australian Parliament House. 2012. International trade in goods and services. Retrieved 18 October 2012 from http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/MSB/61 David, F Porter, M. 1998. Competitive Advantage: Creating and sustaining Superior Performance. The Free Press. Samuel, Delyth. 2010. Gunns and the Australian pulp and paper manufacturing industry. University of Melbourne. Sonnefeld, David. 1999. Social Movements and Ecological Modernisation. The transformation of pulp and paper manufacturing. University of California. Development and Change. Volume 33, Issue 1. Pg 12 Campbell, R, 2012 D, Samuel, 2010, Gunns and the Australian pulp and paper manufacturing industry. University of Melbourne Gale, F, 2008, ‘Tasmania 's Tamar Valley Pulp’, Vol Gunns Limited, Annual Financial report. 2011 [Fact Sheet] http://www.gunns.com.au/Content/uploads/documents/ASX_RELEASE_-_2011_10_24_-_2_-_Gunns_Limited_-_Annual_Report_-_2011.pdf