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Porter Analysis for the Paper Industry

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The intensity level of competition is determined through competitive forces which are prevalent in nature. Te collective strengths of such forces usually determine the success of an organization functioning in the industry, wich in turn would facilitate to gain greater profitability. Sx forces framework consists of variables such as threats of new entrants, eisting rivalry among firms, treat of substitute products or services, brgaining power of buyers and suppliers and lastly, cmparative power of other stakeholders (Wheelen & Hunger, 2011). Te bargaining power of buyers in the paper enhanced quite rapidly with the concentration of various industries in the US such as food sector.

I terms of the retailing viewpoint, te bargaining power has enhanced significantly from varied groups that are purchasing packaging material. Tis factor also has affected the roles played by varied parties inside the paper supply chain (Rundh, n The bargaining power of buyers is generally high in the paper industry due to the availability of a variety of customers in the industry (Schindel, 2003). Te bargaining power of suppliers has become relatively higher the arrival of advanced technologies in the paper industry.

I can also be stated that pulp and paper industry has become increasingly demandable with the incorporation of technology as the major driving force in the paper industry. Te aspect of product orientation has been another key driving force factor. De to technological advancements, te demands for products also increased considerably as customers are seeking better quality products at much affordable rates. Mreover, wth the structural alterations in the different networks on the part of the suppliers, te bargaining has by a greater extent from the supplying segment of technology (Rundh, n The factors such as high cost as well as dependence upon crucial input elements obtained from the suppliers have rendered considerable challenges for the paper industry, cnsequently providing greater bargaining powers to suppliers (The Norman High School Tribune, 2013).

Afew of the competition with regard to paper as well as packaging industry is being generated from varied substitute products. Tere is healthy competition which is due to the emergence of substitute products. Dstinctive solutions related. ..

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