Industry Analysis
The International Paper and Pulp Mills industry has contracted and has become diversifieds lightly over the last five years; theprimary reason is a transition to digital media and paperless communication across the entire nation that fall into developed economies. However, the manufacturing booms in many developing markets have moderately offset the downturn as the demand for paper increased that was used in packaging materials. Altogether the industry is predicted to shift its focus close to packaging materials and sanitary products, which are the two most promising segments for developing the growth(M Diesen, 1998).
For the next five years, the industry’s revenue is forecasted to resume slow enlargement, however growth in growing market will outpace revenue upturn in the United States of America and Europe. The Paper and Pulp Mills industry has experienced very nominal revenue vaporization over the last five years;however; the industry operators have become increasingly accessible to the continued transition towards paperless digital media. Till the year 2015, industry revenue has been estimated to decrease at an annual rate of 0.4% to $566.8 billion(ibisworld, n.d).
Despite several years of slight revenue downturns, the industry has benefited from the growth in paper and pulp output across developing economies, recovering accumulated consumption and rising demand for paperboard packaging products.
Industry Structure
Since the industry structure is comprised of a number of factors, which include level of recognition, GDP growth rate of the nation in which it is incorporated, the competitors, and customers in terms of growth rates.Moreover,their preferences as gauged by their market research and the governmental regulations are alternatively an analysis of the external environment.
Level of recognition:
The success and the level of recognition of the firm could be attributed to its commendable position, which it enjoys in terms of the financial strength that it has in context of the industry it caters to.
Other factors included are employee strength, the extent and scope of business expansion in the overseas.The extent of customer satisfaction has gauged from customers’responses and as estimated by the demand and supply that it enjoys at the Goliath nations such as USA and Canada
It enjoys 80% market share in those parts of the world and increase in customer database that aids evaluation of the customers and the level of information that is gleaned from the database. Lastly, there is healthy risk structure especially financial risk with low debts.
GDP Growth rate:
The USenjoys unsatisfactory GDP growth rates from 2011-2014 as evinced by the following data(bank, n.d)..........................
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