International Marketing Assessment
An international marketing assessment will give us an overview of the potential market in Japan for plywood. Our goal is to determine if there is a viable market to export plywood from Canada. Canada is very rich in natural resources; Canada holds 10 percent of the world’s forests. In Japan, a magnitude 9 earthquake and accompanying tsunami devastated the northeast coast of Japan; 35 to 40 percent of Japan’s plywood production has either been completely destroyed or significantly damaged. This allows for opportunity within this market for existing exporters in the Canadian ‘lumber’ industry and new players to enter this market. Japan is an industrialized, free market economy, the second-largest in the world. Its economy is both highly efficient and competitive. There is proved to be much untapped potential in the Canada-Japan trade relationship and with a free trade agreement Japan could increase Canada’s GDP and boost exports to Japan by as much as 67 percent. There is opportunity within the Japanese market for exported plywood.
Canada is very rich in natural resources; it contains within its borders 20 percent of the world’s natural areas, 10 percent of the world’s forests, and 7 percent of the world’s fresh water. (The Environment and Sustainable Development Indicators Initiative, 2004) Canada’s forest area covers 418 million hectares allowing it to cover 45% of the counties landscape. “The lumber industry is at the heart of the forest industry.” In 2006 national lumber exports in Canada amounted to $9.6 billion, 80% was shipped to the United States. An additional 11% went to Japan, close to 5% to the European Union and the rest to other countries. (The Canadian Lumber Industry: Recent Trends , 2009) “Lumber” includes all first-stage wood products sawn from logs by sawmills, such as two by fours, planks,...