Gunns and the Australian Pulp and Paper Manufacturing Industry.

Gunns and the Australian Pulp and Paper Manufacturing Industry.The current strategic study represents the case of the Australian Pulp, paper and paperboard manufacturing Industry. The Australian pulp and paper industry produces items that are fundamental to to everyday living for example paper and paper products for personal hygiene, food packaging, paper for printing, newspapers, and magazines. The industry is also a huge producer of renewable energy and the major user of recovered paper for recycling.
The reason we are analysing this case is the Australian pulp and paper industry is at a tipping point, with no assurance of survival of what’s to come. It confronts a problematic market environment, with various difficulties i.e economic, environmental and technological, from both domestic and worldwide sources. The economic performance of the pulp and paper industry is steady at best. However it’s economic contribution to Australia remains static, the quantity of people the industry employs directly is falling, in general terms it is contributing less and specific consumption on research & development (R&D) is low.
A SWOT analysis has been drawn up to show the strengths and opportunities for the Pulp, Paper and Paperboard manufacturing industry.
Strengths Weaknesses Opportunities Threats
Closeness to Asia
Competitive raw materials
Advanced economy
Established manufacturing base
Innovation—research capability from universities and research organisations
Skilled labour force
Quality and reliability of supply of the industry’s products “old technology” image of industry and product
Uncertainty over long-term supply of softwood
Ageing and old capital stock—lack of investment
Low Research and Development
Environmental perceptions
Fragmented industry voice
Regulatory impact
High manufacturing costs Leverage marketing (‘Australian made’ and environmental/social aspects)
Investment
Tax benefits — investment depreciation; plantations