Arauco has several sources of competitive advantage, including geographical advantages from Chile's optimal climate for growing trees faster than other regions. It also benefits from economies of scale as one of the largest pulp producers. While geographical advantages and scale are sustainable, government support and technological advantages may not be as they can be replicated by competitors. Arauco has pursued horizontal and backward integration but has yet to move into forward integration into paper production, though it is considering this strategy to diversify from its traditional "pulp alone" focus and stabilize revenues against volatility in pulp prices.