Mactara Case Study

1487 Words 6 Pages
Register to read the introduction… The main focus using this strategy would …show more content…
MacTara’s competition depends on which market segment we’re focusing on. Construction lumber is produced in North America and the largest mills are located to the West of the mountains. This ensures our competitive advantage of trade routes to the more densely populated Eastern US. We also have a major port in Halifax for access to the European markets for value added products (see exhibit F). In Europe the competition is tougher as branding is essential. There are endless choices for flooring/decking overseas and we will need the help of Weyerhaeuser to solidify our brand. Baltic and Russian products are soon to enter the market and they have the advantage of trading routes. This is where our competitive advantage of CSR is beneficial. We actively demonstrate business practices that are environmentally friendly and sustainable (see exhibit H). MacTara prides itself in waste management and converts all waste into fuel used on site or pellets to be sold in the marketplace (see exhibit G). With these competitive advantages Mactara should be a staple in both the construction lumber and value added wood products markets for the foreseeable …show more content…
Expanding allows for MacTara to become less dependent on the US who has proven to be a strenuous customer as of late. Many companies across the province would appreciate the economic stability that a consolidation/alliance would create for their companies and allow them to focus on producing logs. Increase in production means an increase in by-products and therefore an increase in value added products that create more profit. Re-engineering of the kiln to burn bark should cost roughly $1M Cdn and successful lobbying of the provincial government should yield enough for the remaining cost of the packaging plant to be funded by the remaining $4M Cdn that was received due to unfair duties paid. MacTara should focus on selling pellets to all available markets within Europe (residential, commercial and industrial) and educate customers on the convenience of switching to wood heat and how environmentally friendly and financially viable the option has become. MacTara should have the first-mover mentality as they strive to grab as big a market share as

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