International Paper 2012 Annual Report Download - page 29

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COMPETITION AND COSTS
Despite the size of the Company’s manufacturing
capacity for paper, packaging and pulp products, the
markets in all of the cited product lines are large and
fragmented. The major markets, both U.S. and non-
U.S., in which the Company sells its principal prod-
ucts are very competitive. Our products compete
with similar products produced by other forest
products companies. We also compete, in some
instances, with companies in other industries and
against substitutes for wood and wood-fiber prod-
ucts.
Many factors influence the Company’s competitive
position, including price, cost, product quality and
services. You can find more information about the
impact of price and cost on operating profits on
pages 19 through 32 of Item 7. Management’s Dis-
cussion and Analysis of Financial Condition and
Results of Operations. You can find information
about the Company’s manufacturing capacities on
page A-4 of Appendix II.
MARKETING AND DISTRIBUTION
The Company sells paper, packaging products and
other products directly to end users and converters,
as well as through agents, resellers and paper
distributors. We own a large merchant distribution
business that sells products made both by Interna-
tional Paper and by other companies making paper,
paperboard, packaging, graphic arts supplies and
maintenance and industrial products. Sales offices
are located throughout the United States as well as
internationally.
DESCRIPTION OF PRINCIPAL PRODUCTS
The Company’s principal products are described on
pages 26 and 27 of Item 7. Management’s Discussion
and Analysis of Financial Condition and Results of
Operations.
2