A strategic analysis of a kraft linerboard and sackkraft mill

This project presents a strategic analysis of a linerboard and sackkraft mill. The industry analysis of the two different industries shows that both industries are facing substitution pressures and some growth that is largely occurring in non-traditional regions. Competitors are closing high cost facilities and new capacity being built represents low cost production. The cumulative effect of changes is a reduction in unit costs throughout each industry. The internal analysis of the company identifies the fundamental issues the company faces are low productivity and higher manning and energy costs. While the company has good reputation for quality, it has not been able to achieve cost parity with its competitors and remains unprofitable. The broad strategic direction recommended is to lower costs to achieve cost parity with key rivals, while maintaining a reputation for slightly better quality.