Professional Documents
Culture Documents
The Outline
5 Forces Analysis
Case Synopsis
Business Sectors
2008 2002 Took over Adhesive A brand like a and electronic friend materials from Akzo Nobel
1922 1878 Relocated to Dusseldorf 1876 founded by Frits Henkel The Product range to adhesive
Case Problems
Henkel Market has Slow Down
Economy Social
Focusing on emerging and developing Asian market especially India and China Economic slowdown of Euro zone and US Increasing price of raw material and energy
maintain their customer relationship carefully through its products and services. Consumer behavior
Technology
Resources: http://www.mapei.com/public/COM/bilancio/2007/EN/PDF/BIL_EN_2007.pdf
OPPORTUNITY
Vs
Financial Performance of Mapei 2006 - 2007 2006 2007 8.84% 5.34% 91.2% CAGR -2.2% -2.4% 0.2%
Revenue
Operating Profit Margin Net Profit Margin Operating Expenses to Revenue 9.25% 5.61% 90.8%
Porter 5 Forces
Porter 5 Forces
Bargaining Power of Buyer
Same Product Benefit. Price competition is sensitve
(Unattractive)
(Unattractive)
(Attractive)
Threat of Substitute
Rapid change in ICT make differentiation in the industry narrower. Customer can shift to multitasking product.
(Unattractive)
(Unattractive)
Brand Management
Value Chain
Value Chain
Value Chain
(4) Production (5) Logistics
Outsourcing
Resources Based
Resources (Tangible)
Resources (Intangible)
Capabilities
Capability They have different sales channel in DIY stores, specialist shop, drugstore, food retailing shops Easy to access location (rhine river) for supply raw material Creative brand management of each sub-product R&D investment Large segment of product
Core Competencies
As core competencies are resources and capabilities that serve as a source of competitive advantage for a firm over its rivals, it should be met the four criteria
Conclusions
SWOT analysis
SWOT
STRENGTHS
Strong financial position, product innovation, broad product portfolio, strong R&D, intelligent brand management
WEAKNESSES
Weak presence in Asia compare with competitors such as Mapei & Bolton Group, PNG, Unilever
OPPORTUNITIES
Focus on developing and emerging countries (Asia), invest on new projects, positive market outlook for home care and laundry segments
THREATS
Increasing competitive pressure, economic slowdown in US and Euro zone, inflation impact to operating cost
Recommendation
Lessons Learned
Lessons Learned
1. Identify its resources in order to figure the strength and weaknesses from internal environment/ Firms has to determine its capabilities so that allow them to do better to create the opportunity to face its threat Firms has to select the strategy that best allow it to utilize its resources and capabilities to achieve sustainable competitive advantage Firms has to choose and focusing in primary activities that affect significantly to core competency of the company to be self handled & outsourcing for area that less influence.
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