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Cement Industry SWOT Analysis

Cement Industry SWOT Analysis

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04/25/2013

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Cement Industry SWOT Analysis

To plan marketing and management strategies for businesses, it is important to perform a situations analysis. One such analysis, a SWOT analysis, examines "strengths, weaknesses, opportunities and threats" within a particular business or field. The cement industry is an example of a field for which a SWOT analysis would enhance marketing and management strategies.

Strengths
1. The cement industry has many strengths to be considered. Cement is, literally, the building block of the construction industry. Almost every building constructed relies on cement for its foundation. The cement business is a $10 billion industry, measured by annual cement shipments. There is also a strong reputation behind the cement industry. Cement is a solid material and consumers rarely have complaints about the product. Regional distribution plants have also made cement widely available to any type of buyer.

Weaknesses
2. The cement industry is not without its drawbacks. The cement industry relies on construction jobs to create a profit. But the cement industry heavily relies on weather. About two-thirds of cement production takes place between May and October. Cement producers often use the winter months to produce and stockpile cement, to meet demand. Another weakness is the cost of transport; the cost of transporting cement is high and this keeps cement from being profitable over long distances. In other words, shipping cement costs more than the profit from selling it.

Opportunities
3. The cement industries has opportunities as well. One such opportunity is the cement industry's efficiency. The cement industry has recently streamlined its production efforts, using dry manufacturing instead of wet, which is heavier and more time-consuming. The cement industry has also invested about $6 billion in expansion efforts to meet unmet cement needs. Projections show that by 2012, the cement industry will have 25 percent more production capabilities.

Threats
4. The nature of the economy have uncovered a number of threats to the cement industry. The cement industry greatly relies on construction. The current economy has lessened the number of construction jobs, which in turn hurts the cement industry. The cement industry controls the majority of the United States market, but not all of it. About 11.5 metric tons of cement are imported annually to

2.support the unmet need. If other countries can produce and ship cement for a reduced price. even government is spending heavily on infrastructure projects. 5. Lack of awareness program for consumers. 2.S. government is also attempting to regulate the cement industry's waste. Read more: Cement Industry SWOT Analysis | eHow. cement industry is in danger. Service is good “Dhalai karne ke liye” people ask for ACC They have same price prevailing for wholesale at dealers/stockiest retailers end. People are opting for more stable structures and intensive use of cement is taking place. THREATS: . It is having a good image and brand loyalty among consumers. 3. this is the right time to fully tap these markets. 2. 4. 3. Rapid growth is taking place in Bihar and Madhya Pradesh. Thus. OPPORTUNITY. WEAKNESS. Foreign direct investment in infrastructure sector going to increase in coming years. The U. 1. As Indian core industry is also growing at rate of nearly 10% per annum. 1. The competitors are doing much promotional activity rather than ACC Limited that’s why it facing more problems in selling of product in the market. the U.html#ixzz13r9B1COE SWOT of ACC Cement STRENGTHS. The Environmental Protection Agency has introduced regulations for the cement industry to cut down emissions.com/about_6754859_cement-industry-swotanalysis.ehow.it is having a good future. 4. Roads are undergoing through the transformation process through which the traditional method of road building will be replaced by modern concrete roads. which will increase the demand of cement. 1.S.com http://www.

Due to India’s exponential growth many new international cement companies are expected in coming years which will bring a tide of change and can start price war.1. Players such as Jaypee Cement. and heavy discounts to retailers. . 4. and other Benefits. Large number of players in cement industry makes it more competitive for ACC to carefully price its product and at the same time satisfy its dealers and customers. 3. and Birla Samrat are eating up considerable market share. 2. They can also influence many retailers by giving better profit margin. Prism Cement. The emergence of small players in this market may increase the competition and start the malpractices.

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