Assignment task: I have questions regarding the case of "Internationalization at Cementos Argos."
1. What are the most relevant forces that shape the industry of cement by using Industry Analysis?
I analyzed below. Could you add explanations for each?
a. Supplier Power: Suppliers of raw materials such as limestone, clay, and gypsum may have significant power if they are few in number or if the materials are scarce. Additionally, the cost of switching suppliers can impact the industry.
b. Buyer Power: Buyers, such as construction companies and infrastructure developers, may have significant power if they purchase large volumes of cement or if they can easily switch to alternative suppliers.
c. Threat of New Entrants: The threat of new entrants to the cement industry may be low due to high barriers to entry, such as high capital requirements, economies of scale, and the need for distribution networks.
d. Threat of Substitutes: Cement faces competition from substitute materials such as steel, wood, and alternative building materials. The availability and cost-effectiveness of substitutes can influence the industry.
e. Competitive Rivalry: Competitive rivalry within the cement industry can be intense, with several large multinational companies competing for market share. Price competition, product differentiation, and capacity utilization rates are factors to consider.