The case firm is a global actor in the pulp and paper industry with manufacturing capacity outside the domestic market

Interpretation: The case firm made an investment in a joint venture together with a local partner in order to gain proximity to a growing market area in Asia. An important advantage of the joint venture was the opportunity to work with a stable partner and grow with international customers and brand owners. The local presence enabled the firm to operate with a higher degree of flexibility in the converting process in relation to local customers than exporting from Europe. A new strategic decision was made when the firm decided to dispose of its holdings in the joint venture in Pakistan due to market incidents.

Case B

The firm is active in the manufacture of pulp, paper and board products. In 2014 major decisions were taken to increase production capacity, quality and environmental performance. The firm operates in the growing global packaging market where customer preferences for renewable materials and recyclable packaging materials is increasing and driving the market. Close cooperation with customers and partners makes it possible to develop innovative customized packaging solutions in the local market. The firm is working together with brand-owners and major retail- and supermarket chains to improve its activities in the value chain. The customer base consists of approximately 2,000 customers in more than 100 countries.

Market demand is mainly driven by global megatrends such as an increased focus on sustainability, changing consumption patterns by a growing middle-class and an increased urbanization requiring new packaging solutions. Read the rest of this entry »