The paper "Business or Battling for Competitive Advantage" is a perfect example of a Business Case Study. The Australian pulp and paper manufacturing industry has been a great contributor to the Australian economy. It provides different products that are essential in everyday life. These products range from paper and paper products. The papers are used as packages, communication, printing, magazines, and newspapers. The industry consists of approximately 500 enterprises that have directly employed nearly 20,000 people. The industry does generate billions for domestic demand and gives total value added to nearly $ 2 billion.
The industry earns more than$ 2 billion through export. The Gunns Company has both national and international markets. China and Japan are the major countries that import forest and wood products from the Australian industry. The company has set various strategies that are necessary to ensure a higher competitive role in the industry compares to rival competitors. The company has various advantages that have allowed it to compete effectively in the global economy. However, various challenges have continued to affect the performance of the company and industry as a whole.
Instability of the Australian dollar, competition from other countries, cheap importation and a change to digital communications are the major challenges to the industry. The economic performance of the company in Australian may be described as stable. However, with low R& D and less investment than usual, the performance may decrease. It is obvious that a company must undergo critical changes in order to secure a sustainable and long term future. 2.0 Business of the company Gunns Limited is Australia’ s largest softwood and hardwood forest product. It was established in 1875 and it has been a long-standing business.
The company has a vision that seeks to ensure that the wood and forest products are the only preferred and sustainable material that will meet the market trend both nationally and internationally. The vision will be achieved through knowledge transfer, community support, generic and education promotion and market acceptance of wood and forest products. Gunns Ltd has continued to report an increase in its profit every year. This may be attributed to the fact that the buying of its share in the stock markets has continued to grow.
The company has three divisions namely; forest products, plantations, and others. Under forest products, the company deals with forest plantations, timber products, and wood fiber exports. This is the main division in the company. It focuses on integrated production of softwood and hardwood, operating one veneer mill, eight sawmills, export wood fiber facilities and a veneer panel plant (Holbeche 2010). The plantations division includes managed asset schemes for walnuts lots and wood lots. There is 14 managed investment scheme with over $600 million funds under management.
The management of the plantation provides a continuous supply of raw material to the company operations (Mourdoukoutas 2006). The other division comprises of construction of Tasmania, Tamar Ridge winery and network of 10 retail hardware outlets. The company has prided itself on the export of hardwood. Japan has been the main market. Other key markets are in China and Japan. The hardwood pulp exported to these countries is processed into paper and pulp products. There is an increase in the utilization of hardwood in these countries. With this increase in demand, the industry has been subjected to a competitive market.
Tasmania forestry encompasses plantation and native forest resources, fuelwood, production of logs, timber and woodchips. In Australia, this is the only state that is a net exporter of various forest products (Carkenord 2008).
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