Domtar Swot Analysis

1683 Words 7 Pages
Assignment 1: Strategic Management and Competitive Strategies
Introduction
The industry I have chosen for this assignment is the paper/forestry products industry. I have been working in this industry for nearly thirteen years and have extensive knowledge of the industry as a whole. The organization I will focus on is Domtar, my current employer. Domtar is “the largest North American manufacturer of uncoated freesheet communication papers” (Domtar. n.d.a). Domtar Corporation began in 1848 when Henry Potter Burt founded Burt, Boulton Houldings, Ltd. (Domtar n.d.b). Domtar is publicly traded on the New York and Toronto Stock exchanges, and the annual sales are roughly $5.1 billion (USD). Domtar’s corporate office is located in Fort Mill, South
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SWOT analyses help an organization identify internal strengths, weaknesses, as well as external opportunities and threats. Domtar’s strengths include existing distribution and sales networks, high profitability and returns, and a healthy domestic market (Weiner Consulting, 2017). In looking at their weaknesses, Domtar invests a lot of money into research and development in hopes that it may pay off in the future. However, it impacts the current bottom line. Opportunities that exist for Domtar are good potential for venture capital being that Domtar is a long established and successful organization. They also can enter into new markets as their product offerings expand (Weiner Consulting, 2017). Potential threats that exist are tax changes – specifically tax increases and increases in labor costs. Competition will be on the rise as the global market continues to expand which will result in lower profitability due to supply being more readily available (Weiner Consulting, …show more content…
19). There are a least three classifications of stakeholders which include capital market stakeholders, product market stakeholders, and organizational stakeholders. Positive stakeholder relationships can be seen as a competitive advantage over a corporation's competitors. Domtar’s stakeholders include the following: communities, customers, employees, government, investors, NGOs (environmental and health groups, academia, etc.), and suppliers. We will take a more in-depth look at a few of these stakeholder relationships and how they help Domtar reveal the power of enhanced ideas and continuous

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