Project Report Lecico Final

Distribution channels
LECICO Case study
Presented to Dr. Heba Sadek
By : - Mohamed Ghety Mohamed Hussien

- Moustafa Samir Mohamed Hemly
- Mohamed Saied Abdelrahman Taman
- Rowida Saied Elsayed
- Hesham Ashour
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Table of Contents
About Lecico corporation.............................................................................................................................. 2
Vision and mission: ....................................................................................................................................... 5
Thematic analysis of LECICO ......................................................................................................................... 7
Internal and External environment study ..................................................................................................... 8
1. PESTEL Analysis ..................................................................................................................................... 8
2. Porter’s Five Forces ............................................................................................................................. 28
3. SWOT Analysis..................................................................................................................................... 29
LECICO Distribution Channel Objectives ..................................................................................................... 30
LECICO Major Alternatives .......................................................................................................................... 30
LECICO efficiency template ......................................................................................................................... 33
Make or buy analysis .................................................................................................................................. 37
Return on Investment (ROI) .................................................................................................................... 40
LEVEL OF INTENSITY ...................................................................................................................................... 0
Refrences: ..................................................................................................................................................... 0
Appendix ....................................................................................................................................................... 1
Semi- structure interview ......................................................................................................................... 1
1
About Lecico corporation
History
Lecico has come a long way since its modest early beginning of manufacturing 1000 pieces of
sanitary ware per day. The company was the pioneer in the ceramics business in the Middle
East and its origin goes back to 1959 when it started its first manufacturing facility in Lebanon.
Lecico Egypt
Lecico Egypt is an Egypt-based public shareholding company engaged in the manufacture of tiles
and sanitary ware products. The company operates three factories in Egypt, one in Lebanon and
one in France, which produce over 6 million pieces of sanitary ware and 22 million square meters
of tiles annually.
Lecico founded in 1975 in Alexandria, Egypt S.A.E Group (Lecico Group) is one of the leading
sanitary ware and ceramic tiles companies in Egypt. In 1997, the Gargour family entered into a
50/50 joint venture with Sanitec Ltd OY (Sanitec), a prominent manufacturer of sanitary ware in
Europe.
Subsequently, in November 2004, Lecico Group executed Egypt’s first dual local and GDR offering
and is now traded in both the ‘London Stock Exchange’ and ‘Cairo & Alexandria Stock Exchange’.
As a result, the shareholders structure of the group is now as follows: Gargour family continues
to retain control through a 32% stake, while Sanitec’s share has been diluted to reach 15%, down
from 39% in addition to the free float that accounts for the remaining balance
The Lecico Group of Companies
Lecico Egypt S.A.E. is the principal operating company in Egypt and acts as the holding company
for the Lecico Group of companies. The following chart sets out the corporate structure of Lecico
and its principle subsidiaries.
Lecico for Ceramic Industries S.A.E.
Lecico for Ceramics Industries S.A.E was established in Egypt in 1997 as a joint stock company.
Lecico for Ceramics Industries directly owns the company exist Borg El-Arab sanitary ware plant
(the new Borg El-Arab factory currently under construction is owned separately by European
Ceramics S.A.E. ,as to which see below ) and its operations focus on the production of sanitary
ware for domestic and export customers.
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European Ceramics S.A.E. (‘‘European Ceramics’’)
European Ceramics was established in Egypt in 2004 as a joint stock company.

European Ceramics owns the new factory currently under construction at Borg El-Arab which will
produce additional sanitary ware.
International Ceramics S.A.E
International Ceramics was established in Egypt in 2004 as a joint stock company. Lecico Egypt
currently holds 99.9% of international Ceramics S.A.E.
Sarrdesign S.A.E.
Sarrdesign was established in Egypt in 2009 as a joint stock company. Sarrdesign is a brassware
manufacturing joint venture between Lecico and the Shaarawi family with a design capacity of
300,000 units per year.
Lecico Plus For Trading S.A.E
The company was established in 2007, the company’s purpose is trading and marketing of
sanitary ware, ceramics tiles, and trading in modern building material.
Lecico for Trading and distribution of Ceramics S.A.E.
The company was established in 2006 as a joint stock company where Lecico, Egypt holds 70% of
its shares, the company’s purpose is distribution of ceramics, sanitary ware, tiles, kitchens and
bathroom accessories.
Stile
Stile was incorporated in 2009 in Italy. Stile is a joint venture between Lecico and the SFA Group.
The JV is responsible for the marketing and distribution of ‘Stile’ as a new sanitary brand in the
Italian market with a full, exclusive range of Italian-designed products manufactured in Lecico
Egypt.
Lecico Poland
Lecico Poland was incorporated in 2009 in Poland. Lecico Poland is focused on the marketing and
distribution of the sanitary ware and related products of the Group in Poland and the markets of
the CEE.
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Lecico France
Lecico France SARL was established in France in 1994 and is a wholly-owned subsidiary of Lecico
(UK). The operations of Lecico France focus on the marketing and distribution of the sanitary
ware products of the Group in France.
Lecico plc
Lecico plc was established in England in 1987 and is a wholly-owned subsidiary of Lecico (UK).
The operations of Lecico plc. focus on the marketing and distribution of the sanitary ware
products of the Group in the United Kingdom and Northern Ireland.
 Products:
Tiles
Lecico’s tile segment returned to profitability at the gross level in 2017 from losses in 2016. The
inflationary impact of floatation of the Egyptian Pound forced local producers to increase prices
despite overcapacity in the industry.
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Table (1) Tiles Capacity and sales by volume
Vision and mission:

Committed to customer service around the clock
We at Lecico believe we can only grow our business by focusing on our customers’ needs and
improving customer loyalty through a positive customer service experience.
Customer Service Promise
 Respond to any complaint in Egypt within 24 hours and resolve in 48 hours

 Free inspection and investigation on site of any issue raised
 Qualified staff who will seek to offer impartial advice and help
 Life time maintenance support
Product Warranty
 Lifetime guarantee on all Lecico ceramic products

 10 years guarantee on brassware .
 10 years guarantee on all mechanisms & seats supplied with Lecico products
 Spare parts due to breakage can be purchased via our hotline.
 Strategy:
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Lecico’s strategy is to leverage its large production base in Egypt to build a significant presence
across the Middle East and Europe by providing innovative, modern design and world class
quality ware at competitive prices.
Expand regional and International Exports. Lecico’s strategy is to continue developing its
presence and foot print in regional and European export markets under its own brands and as an
OEM producer for leading global manufacturers.
Lecico’s exports to Europe account for over 80% of exports and over 35% of the company’s sales.
The Lecico brand has a 10% market share in the UK, France and Ireland combined. Lecico plans
to increase it’s market share in Europe by targeting new markets and OEM customers while also
widening its offering in existing markets. Lecico will also continue to selectively explore any
opportunities to make value-enhancing acquisitions.
As a result of Lecico’s focus on growing its presence in regional markets, the company’s sanitary
ware and tile exports to the Middle East have grown 50% annually over the last five years. Lecico
sees strong opportunities for continued growth in regional markets, particularly in those
countries with large populations and underdeveloped or rapidly-growing economies. Lecico has
established small trading subsidiaries in Saudi Arabia and Algeria to better access these markets.
Lower production costs. Lecico’s production base in Egypt provides it with relative cost savings
in energy and labour that allow it to be a competitive producer of world-class quality products
for European and regional markets. The company is dedicated to constantly improving efficiency,
cost control and vertical integration in an effort to remain competitive.
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Thematic analysis of LECICO
Thematic analysis used in qualitative research and focuses on examining themes within data. This
method emphasizes organization and rich description of the data set. Thematic analysis goes
beyond simply counting phrases or words in a text and moves on to identifying implicit and
explicit ideas within the data. Coding is the primary process for developing themes within the
raw data by recognizing important moments in the data and encoding it prior to interpretation.
The interpretation of these codes can include comparing theme frequencies, identifying theme
co-occurrence, and graphically displaying relationships between different themes. Most
researchers consider thematic analysis to be a very useful method in capturing the intricacies of
meaning within a data set.
By applying a semi-structure interview for a sample of approximately 20 interviewees about tiles

in general and Lecico’s tiles as a specific brand; the interview results as per Appendix (1); with
seventeen themes that listed in the following thematic analysis illustrated in table (2).
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Table (2): Thematic analysis for LECICO that emerged during the interviews:
S/N Theme No. Theme Description Majority Minority

 Art
1 Theme 1 Tiles famous brands Cleopatra
 Roca
Lecico brand
2 Theme 2 Yes, Known
awareness
3 Theme 3 Lecico products WC Bathtubs
4 Theme 4 Lecico tiles use Not used use it
5 Theme 5 Brand reputation Old designs Durable
6 Theme 6 Tiles description Good Medium
7 Theme 7 Lecico tiles availability Available Don't know
8 Theme 8 Preferred size Large size Small size
 3 days
9 Theme 9 Waiting time one week
 Two weeks
Reduction in handling
10 Theme 10 Reasons for waiting Delay avoidance
costs
11 Theme 11 Tiles designs variety Limited designs Variety available
12 Theme 12 Online purchasing Not preferred yes, preferred
Cash or credit
13 Theme 13 Cash payment Credit payment
payment
Prefer installation but
14 Theme 14 Installation service Not preferred
with guarantee
15 Theme 15 Customer own design Prefer to design myself No, select from existing
Not the same for all
16 Theme 16 Staff experience Good experience
branches
Develop new designs
Launch google
17 Theme 17 Recommendation Increase marketing
application
campaign
Internal and External environment study

1. PESTEL Analysis
Political
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The regularity and richness of the annual Nile River flood, coupled with semi-isolation provided
by deserts to the east and west, allowed for the development of one of the world's great
civilizations. A unified kingdom arose circa 3200 B.C., and a series of dynasties ruled in Egypt for
the next three millennia. The last native dynasty fell to the Persians in 341 B.C., who in turn were
replaced by the Greeks, Romans, and Byzantines. It was the Arabs who introduced Islam and the
Arabic language in the 7th century and who ruled for the next six centuries. A local military caste,
the Mamluks took control about 1250 and continued to govern after the conquest of Egypt by
the Ottoman Turks in 1517. Completion of the Suez Canal in 1869 elevated Egypt as an important
world transportation hub. Ostensibly to protect its investments, Britain seized control of Egypt's
government in 1882, but nominal allegiance to the Ottoman Empire continued until 1914.
Partially independent from the UK in 1922, Egypt acquired full sovereignty from Britain in 1952.
The completion of the Aswan High Dam in 1971 and the resultant Lake Nasser have reaffirmed
the time-honored place of the Nile River in the agriculture and ecology of Egypt. A rapidly growing
population (the largest in the Arab world), limited arable land, and dependence on the Nile all
continue to overtax resources and stress society. The government has struggled to meet the
demands of Egypt's population through economic reform and massive investment in
communications and physical infrastructure.
Inspired by the 2010 Tunisian revolution, Egyptian opposition groups led demonstrations and
labor strikes countrywide, culminating in President Hosni MUBARAK's ouster in 2011. Egypt's
military assumed national leadership until a new parliament was in place in early 2012; later that
same year, Muhammad MURSI won the presidential election. Following often violent protests
throughout the spring of 2013 against MURSI's government and the Muslim Brotherhood, the
Egyptian Armed Forces intervened and removed MURSI from power in July 2013 and replaced
him with interim president Adly MANSOUR. In January 2014, voters approved a new constitution
by referendum and in May 2014 elected former defence minister Abdelfattah ELSISI president.
Egypt elected a new legislature in December 2015, its first parliament since 2012. ELSISI was re-
elected to a second four-year term in March 2018.
Economical
Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile
Nile valley where most economic activity takes place. Egypt's economy was highly centralized
during the rule of former President Gamal Abdel NASSER but opened up considerably under
former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK. Agriculture, hydrocarbons,
manufacturing, tourism, and other service sectors drove the country’s relatively diverse
economic activity.
Despite Egypt’s mixed record for attracting foreign investment over the past two decades, poor
living conditions and limited job opportunities have contributed to public discontent. These
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socioeconomic pressures were a major factor leading to the January 2011 revolution that ousted
MUBARAK.The uncertain political, security, and policy environment since 2011 has restricted
economic growth and failed to alleviate persistent unemployment, especially among the young.
In late 2016, persistent dollar shortages and waning aid from its Gulf allies led Cairo to turn to
the IMF for a 3-year, $12 billion loan program. To secure the deal, Cairo floated its currency,
introduced new taxes, and cut energy subsidies - all of which pushed inflation above 30% for
most of 2017, a high that had not been seen in a generation. Since the currency float, foreign
investment in Egypt’s high interest treasury bills has risen exponentially, boosting both dollar
availability and central bank reserves. Cairo will be challenged to obtain foreign and local
investment in manufacturing and other sectors without a sustained effort to implement a range
of business reforms.
GDP - composition, by sector of origin:
This entry shows where production takes place in an economy.
Agriculture: 11.7% (2017 EST.)
Industry: 34.3% (2017 EST.)
Services: 54% (2017 EST.)
Agriculture includes farming, fishing, and forestry.
Industry includes mining, manufacturing, energy production, and construction.
Services cover government activities, communications, transportation, finance, and all other
private economic activities that do not prod . . . more GDP - composition, by sector of origin field
listing
Industrial production growth rate
This entry gives the annual percentage increase in industrial production (includes manufacturing,
mining, and construction). Industrial production growth rate field listing
3.5% (2017 EST.)
Country comparison to the world: 84
Labor force - by occupation
Agriculture: 25.8%
Industry: 25.1%
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Services: 49.1% (2015 EST.)
Unemployment rate
12.2% (2017 EST.)
12.7% (2016 EST.)
Population below poverty line
27.8% (2016 EST.)
Fiscal year
1 July - 30 June
Inflation rate (consumer prices)
This entry furnishes the annual percent change in consumer prices compared with the previous
year's consumer prices. Inflation rate (consumer prices) field listing
23.5% (2017 EST.)
10.2% (2016 EST.)
Central bank discount rate
19.25% (9 July 2017)
15.25% (3 November 2016)
Electricity – production
183.5 billion kWh (2016 est.)
Electricity – consumption
159.7 billion kWh (2016 est.)
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Natural gas – production
50.86 billion cu m (2017 est.)
country comparison to the world: 16
Natural gas – consumption
57.71 billion cu m (2017 EST.)
Natural gas – exports
This entry is the total natural gas exported in cubic meters (cu m). Natural gas - exports field
listing
212.4 million cu m (2017 EST.)
Natural gas – imports
7.079 billion cu m (2017 EST.)
Social
Egypt is the most populous country in the Arab world and the third most populous country in
Africa, behind Nigeria and Ethiopia. Most of the country is desert, so about 95% of the population
is concentrated in a narrow strip of fertile land along the Nile River, which represents only about
5% of Egypt’s land area. Egypt’s rapid population growth – 46% between 1994 and 2014 –
stresses limited natural resources, jobs, housing, sanitation, education, and health care.
Although the country’s total fertility rate (TFR) fell from roughly 5.5 children per woman in 1980
to just over 3 in the late 1990s, largely as a result of state-sponsored family planning programs,
the population growth rate dropped more modestly because of decreased mortality rates and
longer life expectancies. During the last decade, Egypt’s TFR decline stalled for several years and
then reversed, reaching 3.6 in 2011, and has plateaued the last few years. Contraceptive use has
held steady at about 60%, while preferences for larger families and early marriage may have
strengthened in the wake of the recent 2011 revolution. The large cohort of women of or nearing
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childbearing age will sustain high population growth for the foreseeable future (an effect called
population momentum).
Population pressure, poverty, high unemployment, and the fragmentation of inherited land
holdings have historically motivated Egyptians, primarily young men, to migrate internally from
rural and smaller urban areas in the Nile Delta region and the poorer rural south to Cairo,
Alexandria, and other urban centers in the north, while a much smaller number migrated to the
Red Sea and Sinai areas. Waves of forced internal migration also resulted from the 1967 Arab-
Israeli War and the floods caused by the completion of the Aswan High Dam in 1970. Limited
numbers of students and professionals emigrated temporarily prior to the early 1970s, when
economic problems and high unemployment pushed the Egyptian Government to lift restrictions
on labor migration. At the same time, high oil revenues enabled Saudi Arabia, Iraq, and other
Gulf states, as well as Libya and Jordan, to fund development projects, creating a demand for
unskilled labor (mainly in construction), which attracted tens of thousands of young Egyptian
men.
Between 1970 and 1974 alone, Egyptian migrants in the Gulf countries increased from
approximately 70,000 to 370,000. Egyptian officials encouraged legal labor migration both to
alleviate unemployment and to generate remittance income (remittances continue to be one of
Egypt’s largest sources of foreign currency and GDP). During the mid-1980s, however, depressed
oil prices resulting from the Iran-Iraq War, decreased demand for low-skilled labor, competition
from less costly South Asian workers, and efforts to replace foreign workers with locals
significantly reduced Egyptian migration to the Gulf States. The number of Egyptian migrants
dropped from a peak of almost 3.3 million in 1983 to about 2.2 million at the start of the 1990s,
but numbers gradually recovered.
In the 2000s, Egypt began facilitating more labor migration through bilateral agreements, notably
with Arab countries and Italy, but illegal migration to Europe through overstayed visas or
maritime human smuggling via Libya also rose. The Egyptian Government estimated there were
6.5 million Egyptian migrants in 2009, with roughly 75% being temporary migrants in other Arab
countries (Libya, Saudi Arabia, Jordan, Kuwait, and the United Arab Emirates) and 25% being
predominantly permanent migrants in the West (US, UK, Italy, France, and Canada).
During the 2000s, Egypt became an increasingly important transit and destination country for
economic migrants and asylum seekers, including Palestinians, East Africans, and South Asians
and, more recently, Iraqis and Syrians. Egypt draws many refugees because of its resettlement
programs with the West; Cairo has one of the largest urban refugee populations in the world.
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Population
99,413,317 (July 2018 EST.)
Ethnic groups
Egyptian 99.7%, other 0.3% (2006 est.)
Languages
Arabic (official), Arabic, English, and French widely understood by educated classes
Religions
Muslim (predominantly Sunni) 90%, Christian (majority Coptic Orthodox, other Christians include
Armenian Apostolic, Catholic, Maronite, Orthodox, and Anglican) 10% (2015 est.)
Age structure
The age structure of a population affects a nation's key socioeconomic issues. Countries with
young populations (high percentage under age 15) need to invest more in schools, while
countries with older population . . . more Age structure field listing
0-14 years: 33.38% (male 17,177,977 /female 16,007,877)
65 years and over: 4.28% (male 2,058,217 /female 2,192,791) (2018 EST.)
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Median age
This entry is the age that divides a population into two numerically equal groups; that is, half the
people are younger than this age and half are older. It is a single index that summarizes the age
distribution of a population. Currently, the median age ranges from a low of about 15 in Niger
and Uganda to 40 or more in several European countries and Japan. Total: 23.9 years
Male: 23.6 years
Female: 24.3 years (2018 EST.)
Population growth rate
2.38% (2018 EST.)
Birth rate
28.8 births/1,000 population (2018 EST.)
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Death rate
4.5 deaths/1,000 population (2018 EST.)
Population distribution
Approximately 95% of the population lives within 20 km of the Nile River and its delta; vast areas
of the country remain sparsely populated or uninhabited
Urbanization
Urban population: 42.7% of total population (2018)
Rate of urbanization: 1.86% annual rate of change (2015-20 est.)
Major urban areas – population
20.076 million CAIRO (capital), 5.086 million Alexandria (2018)
Unemployment, youth ages 15-24
This entry gives the percent of the total labor force ages 15-24 unemployed during a specified
year. Unemployment, youth ages 15-24 field listing
Total: 30.8% (2016 EST.)
Male: 27.2% (2016 EST.)
Female: 38.5% (2016 EST.)
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Technological
Communication and Information Technology
The Egyptian Ministry of Communications and Information Technology (MCIT) is the

government body responsible for information and communications technology (ICT) issues in
the Arab Republic of Egypt. Established in 1999, MCIT is responsible for the planning,
implementation and operation of government ICT plans and strategies.
The Minister of Communications and Information Technology, who is nominated by the Prime
Minister and is a member of the cabinet, leads MCIT. The current ICT Minister is Amr Talaat
who assumed the position on 14 June 2018.
MCIT is headquartered in Smart Village Egypt, in 6th of October, Giza Governorate, in the
Cairo metropolitan area.
ICT Sector’s Infrastructure Indicators for 2018
Mobile subscribers
Annual change rate of -4.84%.
Mobile penetration
Annual change rate of -7.13%.
Mobile Internet subscriptions
Annual change rate of 1.76 %.
USB Modem subscriptions
Annual change rate of 2.52 %.
ADSL subscribers
Annual change rate of 25.3%
ICT Sectors Role in Development Indicators for 2018
1) The percentage of government sector enterprises using internet reached 95.3% while
the percentage of government sector enterprises accessing the internet using wireless
broadband reached 16.5%.
2) The percentage of government sector enterprises Providing information about
electronic governmental services reached 25.7%, while the percentage of government
sector enterprises availing for users download government forms/applications online)
19%.
3) The percentage of government sector enterprises having website and use it for media
publishing reached 76.9% while in (information about provided services) 73.6%
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4) The number of ITI graduates to receive software training till July - September 2018
reached 12.18 Thousand trainees.
5) The number of graduates to receive software training till July - September 2018: 22.73
Thousands graduates.
Scientific Research and Invention Patents
Granted Patents for Egyptians and Foreigners
Granted Patents for Egyptians and Foreigners from 2006 to 2016
Egyptian Patents which inverted to The Innovation Development Agency and What Market
of it
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Delegates to Aboard in the Scientific Tasks
Development of No of Delegates to Aboard in the Scientific Tasks by Groups Sciences
19
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Environment
In June 1997, the responsibility of Egypt's first full time Minister for Environmental Affairs was
assigned as stated in the Presidential Decree no.275/1997. From thereon, the new ministry has
focused, in close collaboration with the national and international development partners, on
defining environmental policies, setting priorities and implementing initiatives within a context
of sustainable development.
According to the Law 4/1994 for the Protection of the Environment, the Egyptian Environmental
Affairs Agency (EEAA) was restructured with the new mandate to substitute the institution
initially established in 1982. At the central level, EEAA represents the executive arm of the
Ministry.
An Environmental Protection Fund (EPF) will in accordance with the Environment Act of 1994
(amended by Law 9/2009) be set up. The Fund will receive the amount specifically allocated to it
in the General State Budget by way of support, donations and grants presented by national and
foreign organizations concerned with environmental protection, fines and compensation
awarded by courts of law or via out-of-court settlements for damage caused to the environment,
as well as revenues from the protectorates fund.
The EPF shall have a legal personality and shall be affiliated to the competent Minister for
Environmental Affairs. The financial resources of the Fund shall be exclusively used for realizing
its objectives.
The Agency will offer incentives to institutions and individuals engaged in activities and projects
directed to environmental protection purposes.
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Water
Some Measurements of Water Quality in River Nile 2015
Carbon Dioxide (CO2)
Quantity and Cost of Environment Impacts on the National Economy
22
Sectorial Consumption of Natural Gas and Petroleum Products and CO2 Emissions 2015/2016
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Air
Annual Average Concentration of Sulfur Dioxide, Nitrogen Dioxide and Thoracic Particles
Legal
Country name
Conventional long form: Arab Republic of Egypt
Conventional short form: Egypt
Government type
Presidential republic
Capital
Name: Cairo
Geographic coordinates: 30 03 N, 31 15 E
Time difference: UTC+2 (7 hours ahead of Washington, DC, during Standard Time)
Administrative divisions
27 governorates.
Independence
28 February 1922 (from UK protectorate status; the revolution that began on 23 July 1952 led to
a republic being declared on 18 June 1953 and all British troops withdrawn on 18 June 1956);
note - it was ca. 3200 B.C. that the Two Lands of Upper (southern) and Lower (northern) Egypt
were first united politically
24
Constitution
history: several previous; latest approved by a constitutional committee in December 2013,

approved by referendum held on 14-15 January 2014, ratified by interim president on 19 January
2014 (2017)
amendments: proposed by the president of the republic or by one-fifth of the House of

Representatives members; a decision to accept the proposal requires majority vote by House
members; passage of amendment requires a two-thirds majority vote by House members and
passage by majority vote in a referendum; articles of reelection of the president and principles
of freedom not amendable unless the amendment "brings more guarantees" (2017)
Legal system
Mixed legal system based on Napoleonic civil and penal law, Islamic religious law, and vestiges of
colonial-era laws; judicial review of the constitutionality of laws by the Supreme Constitutional
Court
International law organization participation
Accepts compulsory ICJ jurisdiction with reservations; non-party state to the ICCt
Citizenship
Citizenship by birth: no
Citizenship by descent only: if the father was born in Egypt
Dual citizenship recognized only with prior permission from the government
Residency requirement for naturalization: 10 years
Suffrage
18 years of age; universal and compulsory
Executive branch
Chief of state: President Abdelfattah ELSISI (since 8 June 2014)
Head of government: Prime Minister Mostafa MADBOULY (since 7 June 2018); note - Prime
Minister Sherif ISMAIL (since 12 September 2015) resigned 6 June 2018
Cabinet: Cabinet ministers nominated by the executive authorities and approved by the House
of Representatives
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elections/appointments: president elected by absolute majority popular vote in 2 rounds if

needed for a 4-year term (eligible for a second term); election last held on 26-28 March 2018
(next to be held in 2022); prime minister appointed by the president, approved by the House of
Representatives
election results: Abdelfattah ELSISI relected president in first round; percent of valid votes case -
Abdelfattah ELSISI (independent) 97.1%, Moussa Mostafa MOUSSA (El Ghad Party) 2.9%; note -
more than 7% of ballots cast were deemed invalid
Legislative branch
description: unicameral House of Representatives (Majlis Al-Nowaab); 596 seats; 448 members
directly elected by individual candidacy system, 120 members - with quotas for women, youth,
Christians and workers - elected in party-list constituencies by simple majority popular vote, and
28 members appointed by the president; member term 5 years; note - inaugural session held on
10 January 2016
elections: multi-phase election completed on 16 December 2015 (next to be held in 2020)
election results: percent of vote by party - NA; seats by party -- Free Egyptians Party 65, Future
of the Nation 53, New Wafd Party 36, Homeland's Protector Party 18, Republican People's Party
13, Congress Party 12, Al-Nour Party 11, Conservative Party 6, Democratic Peace Party 5, Egyptian
National Movement 4, Egyptian Social Democratic Party 4, Modern Egypt Party 4, Freedom Party
3, My Homeland Egypt Party 3, Reform and Development Party 3, National Progressive Unionist
Party 2, Arab Democratic Nasserist Party 1, El Serh El Masry el Hor 1, Revolutionary Guards Party
1, independent 351; composition - men 507, women 89, percent of women 14.9%
Judicial branch
highest courts: Supreme Constitutional Court or SCC (consists of the court president and 10
justices); the SCC serves as the final court of arbitration on the constitutionality of laws and
conflicts between lower courts regarding jurisdiction and rulings; Court of Cassation (CC)
(consists of the court president and 550 judges organized in circuits with cases heard by panels
of 5 judges); the CC is the highest appeals body for civil and criminal cases, also known as
"ordinary justices"; Supreme Administrative Court (SAC) - consists of the court president and
organized in circuits with cases heard by panels of 5 judges); the SAC is the highest court of the
State Council
judge selection and term of office: under the 2014 constitution, all judges and justices selected
by the Supreme Judiciary Council and appointed by the president of the Republic; judges
appointed for life
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subordinate courts: Courts of Appeal; Courts of First Instance; courts of limited jurisdiction;
Family Court (established in 2004)
27
2. Porter’s Five Forces

Threat of New Entrants (LOW)
1) Egyptian market facing surplus capacity of around 30% in tiles.

Informal market data suggests that installed tile capacity in Egypt reached 490 million
square meters per day while actual production is around 340 million square meters.
2) Increased price competition as manufacturers fight for market share.
Price competition and aggressive bargaining to shore up market share have been
common since 2015, forcing to reduce prices in tiles from 2014 through 2017.
3) Many Manufactures Run Their Plants below Name Plate Capacity to Deal with Market
Shrinkage and over Capacity
Bargaining Power of Suppliers (High)
1) Approximately 150% Increase in Annual Costs Since 2014 due to Government Series of
Significant Cost Increases on Energy.
Natural Gas 517% from an average of EGP 17.4/mbtu to EGP 107.4/mbtu (Approximately
15% of costs).
Electricity 229% from EGP/KwH of 0.25 to 1.15 (Approximately 6% of costs).
Diesel Fuel 400% from EGP/liter 1.10 to 5.50 (All goods, material and personnel transport
affected).
Bargaining Power of Customers (High)
1) Supply is more than Demand.

2) Availability of Cheap Import Tiles.
Degree of Rivalry (High)
1) Local Competition is Fierce as Egyptian market facing surplus capacity of around 30% in
tiles.
Threat of Substitutes (medium)
1) High Cost of Ceramic Tiles Family Substitutes (Marbles, Granite and Porcelain)
2) High Cost of Ceramic Tiles Substitutes (Wood, MDF and HDF).
3) Low cost of ceramic tiles family substitutes “cement tiles”
28
3. SWOT Analysis
- Strengths
1) Brand Awareness.
Theme 2 in Thematic Analysis.
2) Product Availability.
3) Information Sharing.
Theme 16 in Thematic Analysis
- Weakness
1) Poor Product Variety (Poor Design).

Theme 11 and Theme 17 in Thematic Analysis
2) Bad Brand Reputation.
Theme 1, Theme 5 and Theme 17 in Thematic Analysis.
3) Customer Service.
Theme 14 and Theme 15 in Thematic Analysis as Installation and Design Customization Does
not Exist.
- Opportunities
1) Increased Inflation Rate and Low Threat of Substitutes May Increase Demand
Economic Factors in PESTEL and Threat of Substitutes in Porter’s Five Forces
2) One Week Waiting Time is an Advantage for Transportation Organizing or Sharing with Cross
Merchandize Products to Decrease Transportation Costs.
3) The Improvement in ICT Infrastructure and Increase of Internet Subscribers will be useful in
Effective and Efficient Information Sharing.
Technologic Factors in PESTEL.
- Threats
1) Egyptian Market Facing Surplus Capacity of Around 30% in Tiles.

Degree of Rivalry in Porter’s Five Forces
2) Increase in Fuel Cost which Affect Transportation Cost.
Economic Factors in PESTEL and Bargaining Power of Suppliers in Porter’s Five Forces.
29
LECICO Strategy
LECICO strategy is to provide affordable, high quality products to the low- to mid-price market
segments in Europe and the Middle East.
LECICO Distribution Channel Objectives

1) Buyers Awareness of LECICO Brand.
As a famous says:
a. Retailers are simply order-takers for the demand already created.
b. The best product does not always win, the product everyone knows about does.
2) Ensure Products Availability at the market.
LECICO had her own outlets in local market (for areas which is not covered by retailers) to
avoid conflict of interests.
3) Reduce Inventory.
LECICO share information with company outlets and retailers in order to update its
production plan according to market demand.
4) Build Channel Members Loyalty.
a. LECICO Distribution channels bounded well by sharing the company in empowering
distributer’s assets like purchasing warehouses for each region.
b. Categorized channel members and enter the most profitable customers in loyalty
programs.
LECICO Major Alternatives

Direct Distribution Channel
A direct channel of distribution describes a situation in which LECICO sells products directly to a
consumer without the help of intermediaries.A direct chain of distribution may involve face-to-face
sales, computer sales or mail order but does not involve any form of distributor other than the
original producer.
LECICO target the Large Customers with bulk orders as containers as an example New Capital,
Bashayer El Khair …etc.
30
LECICO had its own outlet in most of Egypt cities, as an example LECICO Trading in Alexandria, cover
five districts:
1) Abo Yousef
2) Loran
3) El-Asafrah
4) El-Dawly 45
5) Khorshid
Indirect Distribution Channel
Indirect distribution is a chain of intermediaries through which a product moves in order to be

available for purchase by a consumer. An indirect channel of distribution typically involves a product
passing through additional steps as it moves from the manufacturing business via distributors to
wholesalers and then retail stores.
In indirect channels of distribution, there are one or more intermediaries between the manufacturer
and consumers. There is no direct contact between the producers and the customers.
LECICO had one Intermediary of Indirect Distribution Channel as it had retailers only.
LECICO had retailers in most of Egypt cities, as an example LECICO Retailers in Alexandria:
1) Batiaa
Location: Km 19.5 Cairo Alexandria Agricultural Road
Location: Korshid
Location: Abo Talat
2) Al Salwaa Trading and Distribution

Location: Khorshid
3) EL Maadawy
Location: Km 29 Cairo Alexandria Desert Road
4) EL-Ashmawy
Location: EL-Mansheya
Location: EL-Syouf
5) El-Mekades
Location: Sidi Beshr
31
6) Kiro Home
Location: Wingate
Location: Khorshid
Channel Members Responsibilities
1) Price Policies (Price List, Discounts…etc.)

2) Conditions of Sales (Payment Terms and Guarantee)
3) Distributors Territorial Rights
4) Mutual Services and Responsibilities
Dual Distribution Channel
In Dual Distribution Channel, Manufacture uses more than one marketing channel simultaneously to
reach the end user.
LECICO apply dual distribution channel as it open their own showrooms to sell the product directly
while at the same time use other retailers to attract more customers.
Segmentation and Targeting
Ceramic tiles compete with conventional flooring materials such gray cement tiles, cement mosaic,
marble and granite.
Tiles Flooring First Level Segmentation
The Tiles Flooring Market generally classified to:
1) Gray Cement Tiles and Stones in Lower Market.

2) Cement Mosaic Tiles and Ceramics in Middle Market.
3) Marble and Granite at Upper Market.
Ceramic Tiles Second Level Segmentation
The Ceramic Customers classified regarding to service output demands to:
1) Cost Sensitive Segment.

2) Reasonable Service Segment.
3) Service Sensitive Segment.
Service Output Demand for Each Segment mentioned in the Table below
32
Service Output Demand

Segment Name Assortment
Bulk Spatial Waiting Customer Information
/
Breaking Convenience Time Service Sharing
Variety
Cost Sensitive Medium Low Medium Medium Low Low
Reasonable Service Medium Medium Medium High High Medium
Service Sensitive Low High High High High High
Ceramic Tiles Segmentation Targeting
LECICO generally targeting Cost Sensitive and Reasonable Sensitive Segments, LECICO had an
opportunity to target Service Sensitive Segment as due to Economic Climate now in Egypt; Ceramic
Tiles Price Booming; many customers will change their preferences among the available ceramic tiles
and According to Theme analysis LECICO had a Weakness in both Product Variety and Customer
Service.
LECICO Tiles Sale Volume in 2018 was approximately 40 million square meter and Informal Market
Data Suggests that actual local production is around 340 square meters; LECICO Local Market Share
is around 12%. LECICO had the opportunity to Increase its market share by target new segments.
NOTE:
Informal market data suggests that installed tile capacity in Egypt reached 490 million square meters
per day while actual production is around 340 million square meters
LECICO efficiency template

Efficiency template is an auditing tool for the channel members’ capabilities to provide each
channel function and add value, and at what cost. It describes:
1- The types and the amount of work done by each member to perform the marketing
functions.
2- The importance of each channel function to the provision of end-user service output.
3- The share of total channel profits that each member should reap.
Table (4): LECICO’s efficiency template:
Efficiency Template of LECICO’s Tiles company
33
Proportional function performance

Importance weight of
of channel member
functions
Retailer
Benefit Lecico
Potential Final Manufacturer Rep / or End-
Cost (H,M,L) weight Lecico Bateaa User Total
Physical 28 H 31 35 40 25 100
possession
Ownership 15 M 17 30 40 30 100
Promotion 10 M 12 60 40 0 100
Negotiation 5 L 2 20 60 20 100
Financing 18 M 21 25 40 35 100
Risk 10 M 12 40 40 20 100
Ordering 6 L 2 20 60 20 100
Payment 5 L 1 20 40 40 100
Info. Sharing 3 L 2 40 40 20 100
Total 100 N/A 100 N/A N/A N/A N/A

Normative
Profit share N/A N/A N/A 35 % 40.8 % 24.2 % 100
(%)
Table (5): LECICO’s channel functions details:
Distributor “Lecico
Lecico End-User
Rep./Bateaa”
34
May keep it for a while in

his location (Apartment).
need to store all the Need to store its quota.
Physical For large quantities he
production (Large Also it pays for
possession can keep the tiles for a
inventory) transportation.
while.
Pay for transportation.
Own all the
production Own its quota (Inventory
Ownership Own his tiles after buying
(Inventory handling handling costs)
costs)
1- Promote to end-users.
1- Promote to
2- Discounts
retailers "Bateaa".
Promotion 3- Sales person N/A
2- Advertising.
4- Public relations
3- Sales persons.
5- Advertising
Negotiation with
Negotiation with both of
retailers " Bateaa"
lecico and End-users
as the follows: Time of negotiation with
Negotiation 1- Legalities.
1- Legalities. Bateaa
2- Time spent in
2- Time spent in
negotiation.
negotiation.
It represents the
following costs but
not limited to:
Pays a whole lot of money
1- trading terms
at the time of purchasing Pays the all the money of
Financing 2- Warranty.
"Such as the first his purchases at a time.
3- Indemnity.
instalment"
4- Cancellations
5- Refunds
6- Goods in storage.
Risks are as follows
but not limited to: Risks are as follows but
1- Insurance not limited to:
2- Loss of 1- Damage
Risk production. 2- Guarantee Risk of damage
3- Incompatible 3- Delay
quality. 4- Bad quality
4- Guarantee. 5- Transportation
5- Damage
Order processing
Order processing with all
Ordering such as IT Ordering from Bateaa
end users and lecico
department
35
Money collection Money collection costs

Payment costs Bank account deposits' Bank fees
Bank Account Fees fees
Provides all the
required info. To
the retailers and
also via website to
assure that all the
product related
info. are available.
Info. sharing are as Info. sharing are as
follows but not follows but not limited to:
limited to: 1- Info. About each Info. sharing are as
1- Inventory transaction follows but not limited to:
Info. Sharing information 2- End-user purchasing 1- FeedBack.
2- Sales data. behavior 2- Purchasing info.
3- Sales forecasts 3- Inventory info. (Quantity and specs).
4- Order 4- order info.
information. 5- product info.
5- Product
information.
6- Other
information
(Capacity info. -
Performance
metrics)
From the previous analysis of the approximated template, it can be found that:
 LECICO’s normative channel normative profit share is 35 percent.

 Bateaa’s normative channel normative profit share is 40.8 percent.
 End-user normative channel normative profit share is 24.2 percent.
These values must be compared with the actual data obtained from full activity costing analysis of
the performance of channel functions if possible, this may provide reasonable estimates instead.
36
Make or buy analysis

Supply chain integration is a frequently examined topic in the supply chain management (SCM)
literature. In order to grow – and sometimes to survive – companies must make wise decisions
regarding appropriate governance models for efficient supply chains. This involves considering
everything from open spot markets; hybrid forms including collaboration, alliances, and joint
ventures; to contracting and full vertical integration (e.g. Hobbs, 1996). Vertical integration has
attracted a great deal of research attention from multiple disciplines, and strategic management and
organisational economics researchers have made significant contributions toward understanding this
concept (Mahoney, 1992).
The SCM literature views vertical integration as one extreme of vertical coordination of supply chains.
Strategic concentration in supply chains marks a key issue for manufacturing firms. Vertical
integration means some companies, such as for example the Spanish clothier “Zara”, owning nearly
the entire supply chain, from design and production, to distribution and logistics, to stores
worldwide. Zara's retail clothing peers, such as Benetton, The Gap, and Hennes & Mauritz, continue
to rely on outside production partners through complete or strong outsourcing (Ferdows et al., 2004).
Many researchers herald the role of integration as the most important aspect of well‐functioning
supply chains (e.g. Richey et al., 2009). Simultaneously, the current prevalence of outsourcing has
forced many supply chains to become more specialised, making integration across company
boundaries even more important. Some theorists even believe outsourcing per se can increase the
efficiency of supply chains (Kroes and Ghosh, 2010). Although outsourcing is prevalent in certain
industries and segments, it has been argued that different economic and technological circumstances
require distinct supply chain governance strategies (Grossman and Helpman, 2002; Rothaermel et
al., 2006). In fact, the outsourcing of the buying firm can be seen as the downstream vertical
integration of the supplying firm, in which the vertical integration results from the customer's
outsourcing strategy. However, this paper focuses of a manufacturer's deliberate strategy to
integrate vertically downstream
 Make or buy decisions:
37
Relational governance
or “quasi-vertical”
Vertical integration is when one organization does all the work (such as: production, sales,
inventory)
Forward – a manufacturer integrates the distribution function
Backward – a distributor or retailer produces its own branded source of product
Outsourcing is when an organization decides to buy the services from a third party
Lecico
Functions
Make or buy decision
This function begins with the movement of the physical product from the manufacturer
through all the parties who take physical possession of the product until it reaches the
ultimate consumer.
Physical
Lecico need to store large volume of inventory which require a
possession big space area of inventory places.
Lecico is following the outsourcing strategy in the physical possession function.
products are stored and transported through distributors channel “ ex: bateaa co.”
Lecico is following the Relational governance integration strategy which Implies a

compromise between make and buy decisions
Ownership
As Lecico takes the responsibility of the ownership of goods from the point of production
to the point of consumption. However some finish goods are sold directly to the distributors
from the lecico factories
38
any type of marketing communication used to inform or persuade target audiences of the
relative merits of a product, service, brand or issue. The aim of promotion is to increase
awareness, create interest, generate sales or create brand loyalty. It is one of the basic
elements of the market mix, which includes the four P's ,i.e., Product, Price, Place,
Promotion
Promotion
Lecico is following the Relational governance integration strategy in promotion function as
following.
- Promote to retailers "Bateaa".
- Advertising.
- Sales persons.
Manufacturers and distributors in marketing channels commonly establish prices, margins,
and other trade terms through negotiations. These negotiations have significant impact on
channel members' profit streams over the duration of the business relationship
Lecico is making negotiation with retailers " ex: Bateaa" as the follows:
Negotiation
1- Legalities.
2- Terms and conditions of the agreements
Lecico is following the relational governance integration in the negotiation function.
Most companies deal in advance payments or a credit limit. However, it is not necessary
that the channel member is getting the payments from customers within that period of
time. A company might take advance payment for product X but maybe that product sold
after 40 days. So till 40 days, the financial burden of that product was on the channel
member. Channel member should be ready for such financing.
Financing
Lecico is following relational governance strategy in terms of the following
1- trading terms
2- Warranty.
3- Cancellations
4- Refunds
6- Goods in storage.
Assuming the risk connected with carrying out channel work or being a part of a channel. If
the distributor or channel member is buying a product, it does not sell, or the distributor
suffers bad debts or any untoward thing happens, then these are risks which the channel
member has to take and it is the function of channel member
Risks are as follows but not limited to:
Risk - Insurance
- Loss of production.
- Incompatible quality.
- Guarantee.
- Damage
Lecico is following Relational governance strategy in the risk related functions
Order processing such as IT department
Lecico is following relational governance strategy in the ordering function and all related
Ordering activities
39
Money collection costs

Bank Account Fees
Payment
Lecico is following relational governance strategy in payment functions
Gathering information about potential customers, competition as well as tracking the

environmental factors is a function of channel member. because without information from
the channel member, the company cannot move in the right direction
Also providing all the required info about the products and their specifications to the
retailers and also via website to assure that all the product related info. are available.
Info. sharing are as follows but not limited to:
- Inventory information
Info. Sharing - Sales data.
- Sales forecasts
- Order information.
- Product information.
- Other information (Capacity info. - Performance metrics)
Lecico is following relational governance strategy in info. sharing functions.
During this analysis, each channel member must respect that the functions per- formed by every
other channel member require certain competences. No party should merely assume that it can take
over another party's functions and perform them better and/or more cheaply. Arrogance has no
place in a vertical integration decision, which must be undertaken with respect for the competence
of other types of organization.
Unfortunately, the decision also must consider opportunism. Such self-interest
seeking often prompts negative responses (e.g., "it represents the worst of human nature").
As we can see, the more specialized a channel member is, the better he will perform in any of
the above given functions. In the end of this case study we will provide some recommendations
from our point of view and based on the output data from the study.
Return on Investment (ROI)
40
Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an

investment or compare the efficiency of a number of different investments. ROI tries to directly
measure the amount of return on a particular investment, relative to the investment’s cost. To
calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment.
The result is expressed as a percentage or a ratio.
The return on investment formula:
𝑅𝑒𝑣𝑒𝑛𝑢𝑒𝑠 – 𝐷𝑖𝑟𝑒𝑐𝑡 𝐶𝑜𝑠𝑡𝑠 𝑁𝑒𝑡 𝐸𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒𝑛𝑒𝑠𝑠

= = 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦
𝑂𝑣𝑒𝑟ℎ𝑒𝑎𝑑 𝑜𝑣𝑒𝑟ℎ𝑒𝑎𝑑
Example: Study the physical possession function in Lecico:
a- when Lecico take the responsibility of physical possession (vertical integration-Forward)
Revenues = 4213.34 *10 6 EGP
Direct cost (operational cost included transportation fleet) = 311.712*106 EGP
Fixed cost = 2036.31 *106 EGP
So;
ROI = 1.91
______________________________________________________________
* above data is based on financial statement of 2018
b- when Lecico is using outsourcing strategy in the functions of physical possession :
41
Revenues = 4213.34 *10 6 EGP
Direct cost (operational cost included transportation cost) = 80 *106 EGP
Fixed cost = 2036.31 *106 EGP
ROI = 2.1
42
LEVEL OF INTENSITY
Refrences:
1) CIA The World Fact Book

https://www.cia.gov/library/publications/the-world-factbook/geos/eg.html#introduction-
category-section-anchor
2) Egypt in Numbers 2018
http://www.sis.gov.eg/UP/Egypt%20in%20Figures%202018/egypt-in-numbers2018.pdf
3) Ministry of Communications and Information Technology
http://www.mcit.gov.eg/
4) Ministry of Environment
http://www.eeaa.gov.eg/en-us/home.aspx
5) First Half 2018 Presentation of LECICO
http://www.lecicoegypt.com/wp-content/uploads/2018/08/Lecico-2h18-Presentation-
0818.pdf
6) LECICO Strengths and Strategies

http://www.lecicoegypt.com/investor-relations/strengths-strategy/
7) LECICO Locations
http://www.lecicoegypt.com/support/where-to-buy/
8) LECICO Annual Reports

http://www.lecicoegypt.com/investor-relations/annual-reports/
Appendix
Semi- structure interview
S Question
1 Which brand do you know in tiles?
2 Did you hear about Lecico?
3 What Ddo you know about Lecico Products?
4 Do you use Lecico Tiles?

If No, Elaborate more.
5 What is your opinion of Lecico Tiles?

Please let me know about advantages And Disadvantages
6 How Do you describe it?

7 Do you find Lecico products near to you?
8 Do you prefer large sizes or small sizes in tiles?
9 How long could you wait for receiving product?
10 Could you tell me more about reasons?

11 Do you find wide range of Lecico tiles' designs?
12 Do you prefer buying online?
13 Do you prefer paying with credit or in cash?

14 Do you prefer installation services?
Are you willing to pay?
15 Do you prefer to design by youself?
16 Did you find Lecico staff have information about the product?
17 Kindly, let me know about your recommendations.
1
Results
S Interview
Omar Aziz Ah. El-Sheikh Omar-KIKI

1 Cleopatra Venecia Lecico
Lecico La Beaute Cleopatra
Venues Lecico El Gawhara
Rock Cleopatra Royal
Al Gawhara
2 yes Yes Yes
3 Tiles Tiles Tiles

WC Wc WC
WB WB WB
Accessories Mixers Mixers
Mixers
4 No No Yes
Low variety.
Bad designs.
5 N/A N/A 1- Medium quality.
2- Low price.
6 N/A N/A Good
7 N/A N/A No
Limited retailers.
8 N/A N/A 1- Large for receiption.
2- Small for kitchen and
bathroom.
9 N/A N/A One week
10 N/A N/A To reduce handling cost
11 N/A N/A yes
12 N/A N/A No
need to see it live.
13 N/A N/A In cash
14 N/A N/A No
15 N/A N/A No
16 N/A N/A Good Experience
17 1- Increaese retailers. 1- Develop new designs. N/A

2- Develop new designs. 2- Produce porceline.
3- New 3D designs 3- To be distributed with
2
large retailers to reduce

transportation costs.
S Interview
M. Ahmed Sheikh Adel Mostafa

1 Cleopatra Cleopatra Cleopatra
Al Gawhara Al Gawhara Venecia
Royal Rock Royal
Al Amir Art Roca
La Beaute Venecia
Lecico
2 Yes Yes Yes
3 Tiles Tiles WC
WC WC WB
WB WB (I don't know that Lecico
Mixers mixers produces tiles)
4 Yes No No
1- Limited variety
2- Old designs
3- Bad surface finishing
5 Good No N/A
1- Adv. Low price
2- Disadv. Low variety.
Old designs.
6 Good (Medium) N/A N/A
7 Yes N/A No
8 Large N/A N/A
9 One week N/A N/A
10 To reduce handling cost N/A N/A
11 No N/A N/A
Limited
12 No N/A N/A
Visit the retailer is
better
13 In cash N/A N/A
14 No N/A N/A
15 Yes N/A N/A
3
16 No N/A N/A
Limited experience.
17 1- Increase sales staff 1- New designs 1- Marketing compaign
experience. 2- Increase variety. 2- Increase number of retailers
2- New designs 3- Enhance the product
3- Increase variety finishing quality.
4- Marketing compaign
S Interview
Yahya A. Koreim M. Moussa

1 Cleopatra Cleopatra Cleopatra
Lecico Al Gawhara Pharahos
AlGawhara Royal Royal
Rock Lecico Lecico
La Beaute
2 Yes Yes Yes
3 WC Tiles Tiles
WB WC WC
Mixers WB WB
Tiles Mixers
4 No Yes Yes
Sanitary and WB
5 N/A 1- V. Good material 1- Good
2- Fair designs 2- Adv. Low price
3- Adv. Durable and low cost. 3- Dis, Adv. Poor designs
4- Disadv. Old designs.
6 N/A Good N/A
7 Yes Yes Yes
8 N/A Small sizes to be: Large

1- Easy in arrangement.
2- Suitable for small spaces.
9 N/A One Week One Week
10 N/A To reduce handling cost Planning and handling

coordination
11 N/A No No
12 N/A No No
See it is better
13 N/A Both are ok Credit
4
14 N/A Yes No
I willpay if needed.
REASON, they will take the risk
of damage and bad assembly.
15 N/A Great No
16 N/A N/A Yes
17 1- Improve the New designs 1- Improve designs

designs. 2- Marketing compaign.
2- Product finishing
quality
improvement.
S Interview
Hany Gad Medhat Ali Mobdy

1 Al-Amir Cleopatra Cleopatra
Cleopatra Al Gawhara El Gawhara
Al Gawharaa Lecico Verdi
Lecico Royal
Verdi
2 Yes Yes Yes
3 Tiles WC WC
4 No No No
Not found Bad decoration UnKnown products
5 N/A 1- Good N/A

2- Adv. Accurate laser cut
3- Poor designs
4- Bad decoration
6 N/A N/A N/A
7 No No No
8 Large Large Small
9 In-Time One week In-Time
10 Planning
11 N/A No N/A
12 No Yes No
5
13 Credit Credit Credit
14 No Yes Yes
If there is a guarantee If there are a guarantee
15 No Yes No
16 N/A Yes N/A
17 1- Advertising 1- Launch google play app. 1- Improve designs

2- Marketing 2- Friendly use website 2- Improve marketing
compaign 3- Premium designs 3- Improve distribution
S Interview
Tamer Walaa Adham

1 Cleopatra Al gawhara Lecico
Al Gawhara Cleopatra Cleopatra
Lecico Labeaute
Royal
Pharahos
2 Yes Yes Yes
3 Tiles Tiles Tiles

WC WC WC
WB WB WB
Bathtub Mixers
4 No No Yes
5 Good Old designs Good

2- Adv. Low price
3- Disadv. Bad
grades available in
local market
6 N/A N/A N/A
7 No Yes I don't know
8 Large Large Large

Less separation lines
9 Two days N/A 3 days
10 Handling N/A To finish work ASAP

coordination
11 No No Yes
6
12 No No No
13 In cash In cash In cash
14 No Yes Yes
15 Yes Yes No
16 No N/A I don't know
17 1- More advertising N/A Better marketing

2- More show
rooms
3- Staff training
4- Marketing
compaign.
S Interview
M. Ghobashi Ghamry Mostafa El hadad Mokhtar

1 Lecico Al Gawhara Cleopatra
Cleopatra Royal
Nova Cleopatra
Magestec
Prima
2 Yes Yes Yes Yes
3 Tiles Tiles Tiles Tiles

Mixers WB WC
WC WC WB
WB
4 No Yes Yes No
5 Old designs Old designs Acceptable (Fair) N/A

Bad finishing Bad Quality
6 N/A N/A N/A N/A
7 Yes No Yes I don't know
8 Smal Large Large Large

The finishing of the Good Look More smart
large is bad
9 One week One day two weeks 2 days
10 To avoid delay in N/A N/A N/A

installation
7
11 Yes No No Yes
12 No No No Yes
13 Cash Credit Cash Credit
14 Yes Yes No Yes

But with guarantee Sure
15 Yes No Yes Yes
Great idea
16 Not All branches No I don't know I don't know
17 Develop new N/A N/A N/A

designs

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By : - Mohamed Ghety Mohamed Hussien

About Lecico corporation

The Lecico Group of Companies

Lecico for Ceramic Industries S.A.E.

European Ceramics S.A.E. (‘‘European Ceramics’’)

European Ceramics was established in Egypt in 2004 as a joint stock company.

International Ceramics S.A.E

Lecico Plus For Trading S.A.E

Lecico for Trading and distribution of Ceramics S.A.E.

Table (1) Tiles Capacity and sales by volume

Vision and mission:

Customer Service Promise

 Respond to any complaint in Egypt within 24 hours and resolve in 48 hours

 Lifetime guarantee on all Lecico ceramic products

Thematic analysis of LECICO

By applying a semi-structure interview for a sample of approximately 20 interviewees about tiles

S/N Theme No. Theme Description Majority Minority

Internal and External environment study

GDP - composition, by sector of origin:

This entry shows where production takes place in an economy.

Agriculture: 11.7% (2017 EST.)

Industry: 34.3% (2017 EST.)

Services: 54% (2017 EST.)

Agriculture includes farming, fishing, and forestry.

Industry includes mining, manufacturing, energy production, and construction.

Industrial production growth rate

3.5% (2017 EST.)

Country comparison to the world: 84

Labor force - by occupation

Services: 49.1% (2015 EST.)

12.2% (2017 EST.)

12.7% (2016 EST.)

Country comparison to the world: 161

Population below poverty line

27.8% (2016 EST.)

Inflation rate (consumer prices)

23.5% (2017 EST.)

10.2% (2016 EST.)

Country comparison to the world: 217

Central bank discount rate

19.25% (9 July 2017)

15.25% (3 November 2016)

Country comparison to the world: 7

183.5 billion kWh (2016 est.)

Country comparison to the world: 22

159.7 billion kWh (2016 est.)

Country comparison to the world: 23

Natural gas – production

50.86 billion cu m (2017 est.)

country comparison to the world: 16

Natural gas – consumption

57.71 billion cu m (2017 EST.)

Country comparison to the world: 13

Natural gas – exports

212.4 million cu m (2017 EST.)

Country comparison to the world: 45

Natural gas – imports

7.079 billion cu m (2017 EST.)

Country comparison to the world: 29

99,413,317 (July 2018 EST.)

Country comparison to the world: 14

Egyptian 99.7%, other 0.3% (2006 est.)

0-14 years: 33.38% (male 17,177,977 /female 16,007,877)