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... In this case Karelia is a Finnish manufacturer of cardboard packaging material, and not only has it sold its products in Finland, but all over Europe.
However, Karelia as every other company has competitors that are always threatening Karelia’s existence on the market of cardboard packaging. From the given text it can be seen that Karelia is in the top 10 producers of cardboard packaging and has a good share of the market. But the tables show us a different picture of Karelia.
PROBLEM
In table 1 it can be seen that Karelia from year 1988-1993 has acquired around 9-10% of the market. ... If we take a look at another point of view Karelia from year 1988-1993 had almost the same percentage of the market 9-10%. ... It is obvious that Karelia and maybe other companies had a leak in their business and somebody else has used that to enter their already conquered market. ...
Table 2 shows the average annual price of cardboard packaging per ton in ECUs and from this table it can be seen that Karelia’s prices per ton are higher 3-5%. ... Maybe Karelia is a kind of company where the quality of its products is much better than of its competitors. ... The inventory that Karelia has at the end of the year is only 9-12% of the European Cardboard packaging industry. It is very low according to my opinion, but given the fact that data from other companies are not presented I cannot say whether Karelia is in a good position or not. But with this data and combined with Table 4 where composition of inventory and the end of the year is presented Karelia is 6% and lower from European Cardboard Packaging industry.
Now let’s go to the conclusion why Karelia is in such bad position compared to the others. First of all let me stress that Karelia has no incentive in progressing year by year and that is why it looses its customers. First factor that contributes to this is the price Karelia charges to its customers. ... Karelia has a small amount of inventory to begin the year. ...
Karelia’s operations are inferior to that of its major competitors because the competitors are:
• Focused on merchants
• Have higher minimum and average order size
• Have less warehouse sales
• Delivery time is better
If a company is focused on merchants than it is much easier for it to distribute the products to the desired place with less cost and at a lower price because merchants always buy big quantities. Karelia is more focused on the end user. ... It is the same scenario with Karelia, it is focused on the end users and they cannot buy large quantities.
Competitors compared to Karelia have higher minimum and average order size and this is also an advantage.
Approximate Word count = 2372
Approximate Pages = 9.5
(250 words per page double spaced)
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