Case | HBS Case Collection | December 1990 (Revised December 1993)

Australian Paper Manufacturers (A)

by David M. Upton and Joshua D. Margolis

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.

Keywords: Agreements and Arrangements; Production; Technology; Ethics; Situation or Environment; Product Development; Segmentation; Expansion; Financial Strategy; Pulp and Paper Industry; Australia;

Citation:

Upton, David M., and Joshua D. Margolis. "Australian Paper Manufacturers (A)." Harvard Business School Case 691-041, December 1990. (Revised December 1993.)