Canada's abiltiy to develop and sustain a competitive advantage in the global wood pellet manufacturing industry

In recent years, there has been increasing interest in sustainable energy production across the globe. This has led to increased export opportunities for North American bioenergy producers. The production of wood pellets in Canada is one industry that has greatly benefited from the increased demand for renewable energy. This paper uses analytical tools outlines by Michael Porter in his 1979 paper '~How Competitive Forces Shape Strategy' as well as his 1990 paper '~The Competitive Advantage of Nations' to examine the wood pellet manufacturing industry. These tools include Porter's '~5 Forces Model' as well as his '~Diamond Model.' These models are used to define the competitive forces in the domestic market that provide competitive advantages / disadvantages as well to define the attributes of Canada as a nation that give it its competitive advantages / disadvantages in the global market. The overall outcome of the analysis shows that Canada can be competitive on the basis that it has abundant resources and established related and supporting industries however there are many challenges to overcome to improve its competitive position. These challenges are associated with the access to raw materials, transportation costs and labor availability to name a few. Government can play a role to improve Canada's position by implementing programs to improve domestic access to raw materials, infrastructure and knowledge resources. Government can also play a role to open up new markets internationally. The overarching uncertainty with regards to the long term sustainability of the wood pellet manufacturing industry pertains to emerging technologies. These new technologies will either shore up the wood pellet manufacturing industry or serve as more economical and renewable substitutes. --Leaf ii.