The lecture is talk about ecological issue on wood industries and businesses. As we know that ecological issues or eco-certified is such an urgent things nowadays, but we can't naïve that kind of thing is still too fancy for now.
Eco-certified wood producer could give good branding to consumers, people can distinguish which the company who has concern to environment issues or not. That's advantage for company that has the certification, even if it occurred by internal appraisal. So, eco-certified is a good branding to reach broad customers.
But, obviously there is a cost to make your product eco-certified, in this context is wood industries. This cost cause higher mark-up price than non-eco-certified wood products. Moreover the quality in the point of views customers who is not concern for ecological issue, are same. So eco friendly branding could be backfire for the companies. If the companies can maintain the price is just higher about 5%, it could be no problems for the market.
According to the lecture, those issues were for local wood market. In the other hands, international market are perhaps more concern to the ecological issues so they are not really price sensitive. Thus make American wood companies facing dilemmatic circumstances. If they can't capture international market, it is matter of time other country companies will do. If they can't maintain the good price, they could lost local American market.
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