Read through the case extract below and answer the questions that follow. Note paper and paperboard. Amcor Limited, for example, offers products such as aluminum cans The Kimberly-Clark Professional segment manufactures and markets facial and bathroom that essay form (NOT point-form) should be used in all responses: and flexible plastic packaging. This differentiation serves to decrease rivalry within tissue, paper towels, napkins, and a range of safety products for the away-from-home individual sectors of the market. marketplace. Products in this segment are sold under the Kimberly-Clark, Kleenex, Scott, Kleenguard and Kimcare brand names. The U.S. and Global Forest Products Industries Market players also attempt to ease competition by owning patents, copyrights, and trade secrets relating to their products as well as by selling their products under well-known With $200 billion in annual shipments and 1.1 million direct employees, the paper and trademarks (where applicable). The existence of contracts between market players and Weyerhaeuser Company forest products industry is an important business sector. Revenues flow predominantly some buyers also weakens rivalry in this market. Rivalry is assessed as strong overall, from domestic sales, with a smaller portion coming from exports. The make-up of the however. Weyerhaeuser is one of the world's largest integrated forest products companies. The industry is diverse, ranging from leaders such as International Paper (US$23.4 billion company is engaged in the growing and harvesting of timber; the manufacture, distribution The strategic approaches undertaken by two of the largest incumbent firms - Kimberly- and sale of forest products; and real estate construction, development and related in sales) to very small firms. Clark Corporation and Weyerhaeuser Company - are particularly noteworthy for the activities. The company operates in the U.S., Canada , Asia, and Europe . Weyerhaeuser The forest products market continues to experience steady growth. One explanation purposes of analyzing the American (and global) forest products sector. business is divided into three segments: wood products, cellulose fibers, and corporate and for this ongoing strength is a robust housing market and its reliance on lumber and other. Given the nature of these offerings, a combination of low price and quality is crucial other wood products. An example of this trend is seen in the U.S. plywood markets to success, making the achievement of economies of scale in manufacture a prime where, between 1999 and 2003, plywood imports rose at a compound average rate of Kimberly-Clark Corporation consideration. 9.3%, from 2.6 million to 3.8 million cubic meters, with the trend continuing into 2004 along with lumber imports, which rose 10.4%. Kimberly-Clark is a manufacturer and marketer of health and hygiene products. The The Wood Products segment produces and sells softwood lumber, plywood, hardwood Selected macroeconomic and industrial data for the U.S. economy are provided in company operates in over 150 countries across the world, although three geographies lumber and engineered lumber products. Building materials are sold to wholesalers and Table 1 (North America, Europe and Asia, and Latin America ) are paramount. industrial users. Weyerhaeuser is one of the world's largest softwood pulp producers, with a global direct sales network supported by manufacturing facilities in North America. Table 1: Selected U.S. Macroeconomic and Industrial Data Products for household use are sold both directly and through wholesalers to Gross Domestic Product $14.66 trillion (2010 est.) supermarkets, mass merchandisers, drugstores, warehouse clubs, variety and department The Cellulose Fibers segment is engaged in producing paper grade, absorbent, and $14.25 trillion (2009) stores and other retail outlets. Products for away-from-home use are sold through specialty grades of pulp that are marketed worldwide. The company's focus is on providing Interest Rates (U.S. Prime Rate) 3.25% (December 2009) distributors and directly to office building management firms, health care establishments, cellulose fibers (pulp) for specifically targeted markets, including premium tissue, 5.09% (December 2008) and other high volume public facilities. publication and technical specialty papers, and construction materials. Housing Starts - February 2009 U.S. housing starts increased by 22.2 percent, " biggest percentage rise since January 1990" Consumer preferences for household paper products vary among geographies, making the The Corporate and Other segment comprises the company's international operations, which task of marketing to a worldwide consumer base particularly challenging for the firm. The include distribution and converting facilities located outside North America; governance-related Greater sophistication (structural elements, architectural featus company's operations fall into three general business segments: personal care, consumer support activities and company-wide initiatives, such as major system and infrastructure etc.) of consumer demand recently seen in U.S. housing market tissue, and Kimberly-Clark professional. deployments; and transportation operations. Labor Force by Occupation Farming, forestry, and fishing - 0.7% Please type in Yes below to advance to the essay questions. Manufacturing, extraction, transportation, and crafts - 20.3% The Personal Care segment manufactures and markets disposable hygiene products for Managerial, professional, and technical - 37.3% domestic use. Products include disposable diapers; training and youth pants; baby wipes; L'a (Ctrl) * Sales and office - 24.2% feminine hygiene and incontinence products; and other related products. Major brands Other services - 17.6% include Depend, GoodNites, Huggies, Kotex, Little Swimmers, and Pull-Ups. The company's Infrastructure - Extensive roadways, railways, waterways, and other transport; innovation of Huggies Little Walkers diaper pants helped in strengthening its European diaper business especially. infrastructure Natural Resources . On a per acre basis, net annual tree growth in the U.S. is 52 cu The Consumer Tissue segment produces hygiene paper products for household use. The feet compared with 27 in Canada and 24 in Russia products offered are facial and bathroom tissue; paper towels; napkins; and other related products. Brand names such as Andrex, Cottonelle, Kleenex, Scott, and Viva are found in Having entered the market by setting up extensive, product-specific manufacturing this business line. Scott Extra Soft bathroom tissue, Scott and Cottonelle flushable moist facilities, exit costs for U.S. forest products firms are likely to be high. However, some wipes, and Cottonelle for Kids led to continued volume and market share gains for the bathroom tissue and wipes brands in North America. companies in this market have diversified, making them less reliant on revenues from