This document presents the strategic strengths and weaknesses of the company Holcim Morocco, using Porter's five forces model. Excerpts from the document: "There exists a certain economy of scale because there is a mass production in order to cover fixed costs. The peculiarity of this sector is that even the variable costs are also very important. This mass production is well absorbed because the real estate sector in Morocco is very flourishing. As an initial investment, the cement industry is a sector of heavy industry, and the initial investment is so important that it is a real barrier to entry. Sometimes, the plant is required to produce one ton of cement up to three years of sales."
The threat of new entrants includes the various barriers that are present at the entry. There exists a certain economy of scale, because there is a mass production in order to cover fixed costs. The peculiarity of this sector is that even the variable costs are also very important. This mass production is well absorbed, because the real estate sector in Morocco is very flourishing.
Tags: Holcim, Porter's five forces model, real estate sector in Morocco
[...] We therefore need of customers: Holcim instead of the supplier and reason in the same manner. market share), Cement and Asment in Temara in Morocco. We are in an oligopoly and there is no great difference between players in the sector. Thus, competition is very strong. ♣ Growth rate: Here it is primarily related to real estate sector and is clearly positive for the entire industry. What is also very attractive for Holcim. ♣ Fixed costs: Fixed costs are too high are rather a barrier to entry. [...]
[...] ♣ Replacement cost: It was not long ago that have been accused of making cement with the agreement on price so prices are almost equal. This is due in part to the fact that they bear roughly the same cost. Thus, change in price of cement by another is almost nothing. Reduced competition in that respect too. Selected Bibliography Meier and Olivier Michel BISAC. Strategic Diagnostics: Evaluate the competitiveness of the company, Wiley p. Yves Pariot. The tools of strategic and operational marketing: 27 Tools and checklists ready, Eyrolles p. [...]
[...] And these were the amenities that were most often purchased for one activity. Here we noticed certain rigidity in the cement sector. But other sectors that used these facilities were not a threat to the cement sector, because they had some flexibility with respect to the cement sector ♣ Access to It should be noted here that the distribution cost of transporting the cement is channels Holcim: very high on road. What makes the cement market a regional market is also why Holcim is especially at the North East of Morocco. [...]
[...] Here too the quality: supplier has no power. ♣ Total cost of It is noteworthy that the largest the supplier in share of the cost components of the the final cost: cement is in fixed costs and a large part of variable costs in this case contributes to the fuel and electricity. So the costs are insignificant for the supplier to meet these costs. ♣ Is Holcim a The answer is yes, since clients are major customer for not many. [...]
[...] It will be difficult for Holcim Morocco to stay out of this network. ♣ Emotional It is in relation to dismissals. barriers: This barrier does exist, because it is in the Oriental culture to be sentimental. ♣ Social In the same vein, the dismissal is restrictions, not an option although the costs government: associated with this dismissal are not very important because relative to its size, cement plants do not employ many workers. In addition, the State would not allow such a large player in the economic and social development sink without doing something. [...]
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