Dawson lumber company limited

With an increase in the number of many small and medium lumber producers, competing to sell a commoditized product, the industry has become very fragmented.

Dawson Lumber Company Limited Harvard Case Solution & Analysis

In September ofDawson pursued a strategy of forward integrating into the retail segment of the lumber value chain expanding operations into the hardware retail segment in order to stabilize current operations.

Canadian Retail Hardware and Home Improvement Industry Analysis This industry, although more attractive than the lumber industry, has its own inherent flaws.

This situation is intensified by seasonal sales, typical of the construction industry.

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Additionally, due to the large initial investment in fixed assets with high specialization required for this industry, lumber firms are locked in and cannot easily exit the industry, further intensifying competition.

NBC understands that the retail market represents an opportunity for growth and a chance at diversification from the seasonal lumber industry; however it feels that Dawson has neglected to consider the changing competitive landscape.

Expected oversupply of Canadian lumber, increased competition in the industry, and greater buyer power, have put downward pressure on prices, adversely affecting the profitability of producers.

The Canadian retail hardware and home improvement industry can be characterized by high degree of rivalry, mainly due to a large number of players competing over products of low differentiation and incurring high fixed costs. The combination of these factors and the slow industry growth in recent years has led to a high degree of rivalry among producers, resulting in a fall in lumber prices.

Located in Ontario, Canada, its operations have been focused on three regions: As lumber producers were forced to compete on price, buyers reaped the benefits.

Dawson intends to finance inventory and receivables with the line of credit. Furthermore, due to low switching costs, high information, and price sensitivity, buyers are not loyal and have high bargaining power relative to retailers.

Restrictive governmental actions along with the high power of buyers, and high degree of rivalry have made the industry unattractive. An expected decline in lumber prices would suggest a reduction in forecasted lumber sales beyond Ottawa, primarily an urban market, Cornwall, a rural market, and Kingston, partially a resort and partially an urban market.Dawson Lumber Company Limited Case Solution,Dawson Lumber Company Limited Case Analysis, Dawson Lumber Company Limited Case Study Solution, Dawson Lumber Company has requested the National Bank of Canada for a working capital loan of $ million.

The lumber company experienced rapid growth du.

Objective National Bank of Canada ("NBC" or "the Bank") is tasked with the decision to review Dawson Lumber Company Limited's ("Dawson") request for an increase in its line of credit up to the amount of $mm.

Read this Business Case Study and over 88, other research documents. Dawson Lumber Company Limited. Objective National Bank of Canada (“NBC” or “the Bank”) is tasked with the decision to review Dawson Lumber Company Limited’s.

Dawson Lumber Company Limited

1 review of Dawson Lumber "Amazing choices and great prices on wood flooring. They custom milled heart of pine to repair damages in our family home at 5/5(1). The Dawson Lumber Company was founded in the s by the Dawson family to market the lumber on their land. InDawson Lumber owned four small lumber yards in the Cornwall area, each operating as a separate company.

Free Essay: Objective National Bank of Canada ("NBC" or "the Bank") is tasked with the decision to review Dawson Lumber Company Limited's.

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