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Case
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Reference no. 9-691-041
Published by: Harvard Business Publishing
Originally published in: 1990
Version: 13 December 1993

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

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