Environmental Product Differentiation by the Hayward Lumber Company

The case traces the greening of Hayward Lumber Company, a family-owned company based in California. As an initial step toward serving an environmentally focused market niche, the firm began selling Forest Stewardship Council (FSC) Certified Lumber to meet a growing demand for green building materials in California’s central coast market. The company found that while supplying FSC wood afforded entry into the green builder market, horizontal expansion into higher margin green building materials created a greater opportunity for revenue enhancement. The case details competing certification standards, and the components of Hayward’s environmental strategy. The case closes with the description of several propositions for strategic growth of the firm, to reach stated environmental and sales goals. Companion Video Available, Hayward Lumber Company “A Journey Toward Sustainability”