Cement and Construction SWOT Analysis

Threat of New Entrants (high)

• Existing businesses are fighting tooth and nail to maintain their market share
in the face of severe competition.
• It costs a lot of money to start a new cement company.

Threat of substitute products (low)

• Construction work would be nearly impossible without cement because it is

the primary source of strength in buildings and there are no other alternatives.

Bargaining Power of buyer (low)

• Cement producers have surpassed purchasers in power, and most businesses

are attempting to eliminate middlemen.
• Cement producers pursue smaller customers as a secondary market, despite
plenty of competition and huge institutional demand. As a result, purchasers
do not have sufficient bargaining power.

Bargaining Power of supplier (low)

• Setting up a cement manufacturing company in India is challenging because

the government controls all natural resources required to create cement.