Subject category:
Production and Operations Management
Published by:
Harvard Business Publishing
Version: 13 December 1993
Length: 22 pages
Data source: Field research
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Abstract
Describes a company which has broken an unwritten cordial agreement amongst the three Australian paper manufacturers to split the domestic market three ways by market segment. The company invades another''s "territory" with advanced technology, quality, and, importantly, by using the other company''s poor environmental record to protect itself against retaliation. The defender finds itself unable to respond by adding capacity as public pressure denies it the ability to add capacity and upgrade the technology. Having won a large share of the market, and having successfully introduced a new recycled paper product, the invader is now considering the financial, strategic, and ethical issues of further expansion.
Location:
Industry:
Size:
Large, USD500 million sales
Other setting(s):
1987-1990
About
Abstract
Describes a company which has broken an unwritten cordial agreement amongst the three Australian paper manufacturers to split the domestic market three ways by market segment. The company invades another''s "territory" with advanced technology, quality, and, importantly, by using the other company''s poor environmental record to protect itself against retaliation. The defender finds itself unable to respond by adding capacity as public pressure denies it the ability to add capacity and upgrade the technology. Having won a large share of the market, and having successfully introduced a new recycled paper product, the invader is now considering the financial, strategic, and ethical issues of further expansion.
Settings
Location:
Industry:
Size:
Large, USD500 million sales
Other setting(s):
1987-1990