Paper industry. Stora Enso Essay Example | Topics and Well Written Essays - 3000 words

Paper industry. Stora Enso - Essay Example Paper industry. Stora Enso Stora Enso has already become the leader in the market of paper and paperboards. It already has large pool of steadfast and existing customers; however it is important to maintain its position by conducting effective R& D process. Currently, Stora Enso is trying to improve its position by conducting the research in such areas as multi-color printing, new printing techniques as well as fiber-based packaging. Successful research in these areas might lead to the improvement in the quality of products and services that the company provides and assure that it will retain its leadership position in the market. Product development. As R&D is one of greatest priorities in Stora Enso, it is capable to market new products to existing customers. Recently, the company has developed new product- packages with radio frequency indicators, which the company sells to various pharmacies in Estonia and Finland. If the current trial of the sale process is completed successfully (as in today’s technological highly sophisticated era, there is no guarantee that the electronic forms of protection of goods and services can not be fortified), it will reduce the number of fortified drugs sold in Northern European market, and even in the world as well. Market development. The demand on the paper and packaging products has been growing steadfastly during the last several years. High prices on the paper in the USA are ones of the indicators of the growth in the demand on the paper and packaging products, another is growing demand in China. ... Market development. The demand on the paper and packaging products has been growing steadfastly during the last several years. High prices on the paper in the USA are ones of the indicators of the growth in the demand on the paper and packaging products, another is growing demand in China. Most of analytics almost universally agree that the demand will continue to grow in the next several years, and there are grounds to assume that manufactures in China will produce much less paper than current demand of the Chinese economy requires. According to the information of Datamonitor, China exhibited the growth of 9% in the demand on paper in 2005 compared with the same period in 2004.4 Stora Enso continues its aggressive expansion in the Chinese market. It recently has signed the contract with another paper company of China, in the southern province of Guangxi. According to the agreement mentioned the company will be able to acquire the rights on 600 ha of forests in the province, moreover the company is poised to establish 120000 ha of plantation to satisfy the demand on paper products in the province. 5 India is another potential market for the products of Stora Enso. Indian economy has been growing rapidly during the last several years as well; demand on the paper and the packaging products has been growing in this country and according to the predictions of several specialists this country will be another important player in the market of paper industry. Diversification. This is the part of Ansoff's matrix where new possibilities for the marketing of new products and services should be studied. As one knows from the theory of marketing there are two types of diversification: related and