Competing to Win in the Wollastonite Market: An Industry Update & Strategic Management Case Study

The demand and supply of wollastonite has gone through a dynamic period in the 1990's. A 10% -15% growth rate of demand stimulated interest in evaluating new projects. However, the mid-1990's brought declining prices for commodity applications and natural barriers to entry for technical applications, making many of these potential projects uneconomic. Successful projects that were brought to market were done so by incumbent producers. This work examines the competitive structure of the wollastonite market by evaluating the strategic decisions of the industry leader, NYCO Minerals Inc., and a new market entrant, Orleans Resources, in an attempt to identify the environmental threats and opportunities of this industry. Results suggest new entrants like Orleans Resources face significant entry barriers for technical applications, while NYCO Minerals could improve its profitability by having less exposure to commodity applications.