Professional Documents
Culture Documents
Prepared by
Bahgat Mahmoud
Maged Attia
Omar Ghareeb
Mohamed ElBanna
Mai Ashmawy
Introduction
• Cables Manufacturing industry is one of the most
important industries in Egypt due to the increase in
governments' spending on infrastructure to attract
more investments.
– International Cables.
11%
– Others.
55%
21%
Market Shares
• Major International Players:
– ElSewedy Electric.
– Elloumi Group.
– Energya.
– Nexans.
– General Cable.
– Others.
Company Brief
• The ElSewedy family began what is today
ElSewedy Electric in 1938 as an electrical
equipment trading company.
9%
24 % Sadek Ahmed El Sewedy
27%
17%
23% Ahmed Ahmed El Sewedy
23% 24%
9% Other Non-Executive Sewedy
Family
Macro environmental factors
(PESTEL)
• Political Factors:
– The electric cables industry in Egypt experienced a
slowdown in sales throughout 2013 4th quarter with
respect to the same quarter in 2012 due to the
political instability and uncertainty in Egypt.
Bargaining
Intensity of
power of
competition
suppliers
Threat of Bargaining
substitute power of
industries customers
Barriers to entry
Micro environmental factors
(Michael Porter 5 factors model)
• Bargaining power of suppliers: (LOW RISK).
– Too many suppliers.
– Inputs have no close substitute.
– Few major players in the existing industry.
– Brand loyalty:
It’s high due to the products quality, the Brand name
known worldwide.
– Economies of scale:
Due to existence since 1938 they eliminated the risk of
the high fixed cost by the excessive production.
Micro environmental factors
(Michael Porter 5 factors model)
• Threat of substitute industries: (LOW RISK).
No substitute industries which lower the
industry risk as a whole.
• Intensity of competition: (MODORATE RISK).
Few major players.
Close substitutes to each other.
High fixed cost.
Low rate of demand.
Micro environmental factors
(Michael Porter 5 factors model)
• Substitute:
– Product: Too many players (Local & international)
(HIGH RISK).
– Industry: No substitute industries (LOW RISK).
7 Risk Characteristics
• Regulations:
– Control the business environment political &
economic are instable (HIGH RISK).
– Cables Industry: company is enforcing high level
of regulation to maintain worldwide standards
acceptance (LOW RISK).