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This case study is about a small family firm with a factory producing ice cream sticks from thin wood veneer. They also produce toothpicks and other products from wood veneer. The firm has been successful over many years in producing ice cream sticks to a high quality at low costs. The owners have developed machinery and equipment by being innovative which has continually improved productivity and quality. Recently a large overseas company has formed a consortium with a local timber processing firm to produce ice cream sticks, to take over the whole New Zealand market and to export. They have the licence for American machines which will produce and check the ice cream sticks. They have already approached the ice cream makers about future supply of sticks. The small firm is faced with major problems about their future viability and how to face up to this new threat.