STEEP ANALYSIS ON INDUSTRY OF PULP AND PAPER - Essay Example

Steep Analysis on Industry of Pulp and Paper The STEEP analysis on the pulp and paper industry of Canada would provide an idea about the external environment in which the industry operates. The acronym of STEEP has been used to denote the various factors that would affect the macro environment of the Canadian Industries include the Social, Technological, Environmental, Economic as well as the Political factors affecting the business environment.Social The changes in the consumption pattern of the society have affected the pulp and paper industry of the present day.

Due to the increased use of the electronic medium of communication or the digitization and automation in the every aspect of business the need for physical paper has shown a decline in the recent ages (Barney, 1991). The inclination towards the use of the papers has gone down. Even tests in the schools and colleges are held through the electronic medium through the online tests.TechnologicalThe use of the electronic medium in the businesses has affected this industry. This has led to a decline in the purchase of the paper and pulp.

However, a number of new technologies have been adopted by the manufacturers which would be cost efficient and would lead to rise in the revenue of the companies. The technological shift would also lead to a rise in the production of the paper in the country. However, as most of the companies are moving towards sustainability the use of hardcopy paper using for mails and documentation are getting reduced. EnvironmentalSince the major inputs for the manufacturing of paper and pulp is tree, the manufacturers have become more inclined towards eco friendly.

This has led to a rise in the demand for the hand-made paper or of materials which are made up of recyclable products and thereby saving a lot of trees. The manufacturing companies also have to be conscious about the balance in the emissions during the process of production (Chhabra, 2010). There are a number of laws pertaining to the environmental auditing and regulations which has been set by the government of the country. The companies have to ensure that these laws are not violated while they are undertaking their production process.

EconomicThere is a lot of variety of paper that is being produced in India. For each of the qualities the pricing of the paper varies and hence the revenue from the expensive category of the product is quite low. However, the number of mills that produce the paper is quite limited. Therefore there is an oligopoly market that is existent in Canada and the suppliers compete on the basis of price competition. PoliticalCanada has a stable political environment. Along with that the trade relations with the United States and the participation in the NAFTA has helped the country to move towards a better economic position and have helped the country to complete in the larger world market.

The regulatory framework set by the government of Canada has proved to be conducive for any business to grow and prosper.ReferencesChhabra, D. (2010). Sustainable Marketing. London: Routledge.Barney, J. (1991) “Firm resources and sustained competitive advantage”. Journal of Management, Vol. 17(1), pp. 99-120.