...yields by 2004. The company had three main product segments which include pulp products like bleached and unbleached Kraft pulp; forestry products like pulpwood; and wood products like lumber and remanufactured wood products. In 2004, the company wanted to invest more to get more development. The company was facing alternatives: one was forward integration moving into paper manufacturing; the other one was horizontal expansion investing US $1 billion to construct a new state-of-the-art chemical pulp plant. 2. Situation According to the case, we can see that the competition in the pulp industry is strong. First, the competition of existing competitors in market pulp was strong. From the case we can get that most of the large companies were involved in backward integration to produce the pulp for their paper themselves. Most major companies had their own forests, pulp mill, paper manufacturing facilities and even their own distributions. These vertically integrated pulp and paper companies produced 142 million tons of pulp out of the 183 million tons produced worldwide. There were some smaller local paper firms that still purchased the pulp from suppliers like Arauco based on their needs. For Arauco, it can only...
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...his right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2011 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN 978–0–230–28487–6 hardback This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is...
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