Bargaining power of suppliers (Low):

Porter's The costs of changing suppliers are low for UNACEM because it has a

Five Forces wide variety of suppliers. The company evaluates each supplier and
contractor whether they meet its requirements like quality,
environmental, safety, etc. To make a business link. On the other hand,
inputs are not difficult to obtain and are negotiated at comfortable prices;
In addition, the company extracts its main material: Caliza. Which is used
to produce the Clinker.

Potential entry
of competitors
(Low): Industry Rivalry (Low): Bargaining
It has high barriers to entry. The company
power of buyers
presents economies of scale and the capital There is a geographic oligopoly between the three (Low):
investments for the industry in which UNACEM largest cement companies in Peru: Cementos
is located require the installation of plants and Pacasmayo in the northern part of the country, Unacem's two main business lines are
the acquisition of advanced technology for Unacem in the center and Yura in the southern bagged cement and bulk cement (71.8%
production processes. Likewise, there are region. Given this, each company presents almost and 29.2% respectively in 2018).
various environmental laws that must be complete hegemony in its region, eliminating rivals Regarding the Peruvian bagged cement
compulsorily complied with for the operation of from competitors.There are other smaller cement market, this is made up of 73.7% self-
the company. companies but they do not have a significant construction and the rest corresponds
presence in the market share. to construction companies. On the
other hand, in the bulk sector, 57% is
sold to concrete companies and 43% to
mining and industrial companies. As we
can see, the most part of sales comes
from mass consumption, which
Threat of substitutes atomizes your target market and allows
you not to be especially dependent on
(Low): any customer. Moreover, because
Unacem have a monopoly in the central
Since an important part of Unacem's sales is represented by the region of the country, companies in the
self-construction sector, it could be thought that people could use region have no other option than to buy
alternatives to cement such as clay, drywall, adobe, quincha or other from Unacem since they would
self-sustaining materials; however, we consider that the target audience otherwise incur in greater
is not going to sacrifice the quality offered by cement for a reduction in transportation costs.
costs, not to mention the construction companies.