1.Tissue paper industry produces disposable paper made from mixture of recycled and virgin fibers from wood. Familia - Sancela, 50% Swedish SCA joint venture since 2001, is Colombian market leader in tissue products like toilet paper, napkins, kitchen towels and facial tissue. The company operates in the home market where the environment can change form stable to unstable rapidly. Although the future is promising, the way to be successful has changed enormous after 1999 Colombian Economy recession. Since then, the Tissue industry market players have constantly been looking for innovative strategies to approach customers more effectively and grow market share.
Main environmental factor is Political stability in Colombia which has (George, 2005) the biggest effect on the performance of the Colombian Economy. Inflows of foreign direct investment (FDI) is an important issue at the moment where Colombia, an emerging market, is ranked in place 52 for 2006 in the world business environment rank, being the third best ranked south American country after Chile (22) and Brazil (44) according to "The Columbia program on international investment" (The Economist, 2006).
Consequently new market players are joining hence rivalry between competitors is increasing in Colombia (Grant, 2002 ).
Economic growth has also a repercussion in the whole paper industry. Investment in plant and equipment has risen over the last 3 years which permitted to buy new technologies and expand production capacity, generating new working positions and consequently, decreasing unemployment. The tendency shows that in unstable political and economical environments in Colombia, there are more tendencies from the citizens to save the money than to spend it on goods. (Latin focus consensus Forecast, 2006).
Analyzing technological factors, the Tissue paper industry requires big investment in Research and development. This create a technological entry barrier (Tolsi, 2000,) for new market players but...