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    Asad Ullah
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    Fauji Fertilizer Bin Qasim Limited dominates the Pakistani fertilizer market, controlling over 50% of the urea and DAP markets. It produces over half of Pakistan's total urea needs. With annual fertilizer sales revenues of 108 billion rupees, it is the largest fertilizer company in Pakistan. Its main competitors are Engro Fertilizers and Al Fatima Fertilizers. As an agriculture-dependent country, Pakistan has a strong demand for fertilizers and the government provides subsidies, giving fertilizer companies bargaining power over buyers. The fertilizer industry also has high barriers to entry that make it difficult for new competitors to enter the market.

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    Fauji Fertilizer Bin Qasim Limited dominates the Pakistani fertilizer market, controlling over 50% of the urea and DAP markets. It produces over half of Pakistan's total urea needs. With annual fertilizer sales revenues of 108 billion rupees, it is the largest fertilizer company in Pakistan. Its main competitors are Engro Fertilizers and Al Fatima Fertilizers. As an agriculture-dependent country, Pakistan has a strong demand for fertilizers and the government provides subsidies, giving fertilizer companies bargaining power over buyers. The fertilizer industry also has high barriers to entry that make it difficult for new competitors to enter the market.

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    5 views3 pages

    Presentation 4

    Uploaded by

    Asad Ullah
    Fauji Fertilizer Bin Qasim Limited dominates the Pakistani fertilizer market, controlling over 50% of the urea and DAP markets. It produces over half of Pakistan's total urea needs. With annual fertilizer sales revenues of 108 billion rupees, it is the largest fertilizer company in Pakistan. Its main competitors are Engro Fertilizers and Al Fatima Fertilizers. As an agriculture-dependent country, Pakistan has a strong demand for fertilizers and the government provides subsidies, giving fertilizer companies bargaining power over buyers. The fertilizer industry also has high barriers to entry that make it difficult for new competitors to enter the market.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    Competitive Rivalry:

    • It has accumulated 53% & 52% shares of Urea and DAP markets respectively.
    • It has produced 2527KT of Urea contributing to 44% of Pakistan’s total Urea need. 
    • It has highest aggregate sale fertilizers revenue of RS 108 Billion.

    Two main competitors of the company are:


    • Engro Fertilizers (2nd after Fauji).
    • Al Fatima Fertilizers (3rd after Fauji).

    • High Barriers to entry in industry.


    • Strong brand image.
    Bargaining Power of Suppliers:
    Fauji fertilizers are in need of two main raw materials for its products.
    • Firstly Nitrogen gas which is needed in manufacturing of urea. 
    • Secondly the need of phosphate acid for Sona DAP.

    Company has done a joint venture in Morocco by the name PAKMAROC.

    Bargaining Power of Buyers:


    Pakistan being a highly agriculture based country.
    • High need of product.
    • Low switching costs.
    • Govt. subsidies given to industry.
    Threats of Substitutes:
    Its products prices are higher than those of its competitors.
    • Premium Quality Products.
    • Narrow Product Line. 
    • Less customization/ Need based product.

    Threats of New Entrants:


    The industry has high barriers for new entrants .
    • High Setup Cost.
    • Cost of vast distribution network.

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