Oil absorptive fiber granules – a new product for Södra? Industry and market analysis of the Swedish absorbent market

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Oil is a necessity for today's society in the modern world. Due to operational activities it sometimes occurs accidents involving oil spills. There are many sanitation methods that are used to combat oil spill accidents and the most suitable method depends on the situation. Absorbents are a sanitation method which is used to target small oil spills through absorption of the oil. Södra, a wood-processing company, is currently developing an organic absorbent from paper pulp. Södra wants to examine the Swedish absorbent market regarding its competitors, customers and potential. The investigation of the market provides a foundation for the decision making process regarding if the product is suited for further development. In the thesis, A SWOT analysis is used as the framework in order to show a comprehensive overview of both the absorbent market and important product related factors. The environmental effects of Södras and its competitor's products have been included in the SWOT analysis used in the thesis. A qualitative methodology consisting of interviews was conducted in order to gather sufficient data for the analysis. The conclusions from the findings could be summarized as following: The absorbent market is a mature market that consists of many different market segments. The customers are situated all over Sweden and they do not purchase large volumes of absorbents. The competitors in the industry have very similar products and are small in size and most of them have a turnover ranging from 1-3 MSEK/year and 1-3 employees. The absorbent industry could be a small part of Södras business since the market is not very lucrative and mainly consists of customers with ...