On November 24, 2005 the company was awarded a patent for its ground breaking technology which utilizes banana tree trunks as the raw material to produce paper (Papyrusaustralia, 2009). A SWOT analysis will help us understand the internal and external environment of the company.
Papyrus Australia is start up company with an innovative product that will revolutionize the paper industry.
The company has a patented technology which gives it a monopoly for at least 17 years. There is surplus of raw in the word due to the fact there are over 25 million banana trees in the world (Prospectus, 2005).The energy utilization for a manufacturing plant is extremely low and a complete manufacturing facility can be set up in farm in a small space of 500 square meters. The water expense of the manufacturing facility is cero. The plantation actually receives the additional benefit of obtaining free water to irrigate the banana trees since the actual tree from which the truck is extracted is made up of 60% water, which can be put to good use since it has to be disposed of anyways during the manufacturing process.
The production of the banana paper is limited to the size of the farm. The business model does not consider the transportation cost of bringing in banana tree trunks as raw material from other farms. There are logistical problems associated with the producing banana trees because has to set up a large network of manufacturing plants across the world. The operation is dependent on penetration the Sub-Saharan African region which is one of the most underdeveloped regions in the world. The company has not shown yet they can mass produce their product. The company is still in the adolescence stage of its business life cycle.
Due to the fact that the company is starting out from scratch there are plenty of opportunities for business expansion