Competitive market analysis of eastern red cedar

Eastern red cedar (Juniperus virginiana) is often considered a ?trash or nuisance? tree. In some states, this species has been declared invasive and management strategies have been adopted to destroy it. However, another more positive side to red cedar has been the focus of this market research study revealing a profitable expanding marketplace for red cedar generating $60 million dollars in annual sales. The research goals of this study were to develop a basic understanding of the market for eastern red cedar products and analyze the competitive forces that coordinate and control the markets by applying Porter?s Five Forces Model. Mail and phone surveys were used to explore the eastern red cedar industry. The eastern red cedar market ranges from large firms with gross annual sales over $16 million to small operations with less than $10,000 per year gross annual sales. Critical resources needed to compete in the eastern red cedar marketplace include access to raw material and labor, market knowledge, financial resources, and the cultivation of personal relationships among players in the value chain. Very little bargaining power is exerted by suppliers or buyers. Federal, state, and industry policies have little impact on the eastern red cedar resource or markets. A comprehensive report and a market directory were produced based on the results of the research and were provided to all market participants. These documents are designed to help companies better understand their markets, develop new relationships, and take further actions for the collective benefit of the red cedar industry.

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