Top Innovative Approaches to Improve Your Cement Company
by Pooja Late so cutEven as within the cement industry, there are changes,
success cement companies are adding value to their products by targeting their
micro markets. This has made them apply
different commercial strategy within the cement industry and we want to explore
some of the successful commercial strategies that have been proven. It isn’t any secret that most cement companies have struggled
continuously in trying to generate returns on invested capital greater than the
cost of their capital. The following are some of the strategies to employ
Be acquitted with
the market: CEO of cement industries
should acquire a comprehensive intelligence of the market and develop a clear
view of the micro markets under competition with the company. The model for
these micro markets has to be based on a combination
of data like changes in supply, forecasting of demand by segments, pricing, and
the potential transition points. Apart from this, there should be landed costs,
estimation of the competitors manufacturing cost with financial priorities and
objectives. This will provide a comprehensive representation of the market
dynamics and isolates the opportunities to create value.
Determine your strategy: After gaining a clear
understanding of the opportunities and market dynamics, the CEOs of cement
companies can make a definition of what their own objectives are, determining
which particular micro-market to focus
on. With this, they can anticipate potential changes, setting market share
aspirations, and developing a series of strategic initiatives in addressing
issues and opportunities that may arise. One thing that might be helpful is
scenario modeling because it enables CEOs of Cement Company to identify
the potential emerging issues and ponder on the processes and actions to take.
Create structural advantages: After determining the
strategy, the next step is mapping out the structural moves that will help in
creating a competitive advantage within a specific micro market. Structural
moves to increase profits include taking production offline, acquiring
productive assets, shutting down integrated or kilns
plants or dedicating production capacity to exports only.
Test and implement commercial practices: Immediately there is a commitment towards the structural moves,
commercial activities can be built within the region or micro-market level. In determining the perfect course, the
manufacturer should stimulate the effect of various tactical initiatives including
changing price regime, fine-graining customer segmentation etc. These simulations can help in the provision of
initial feedback concerning the moves that will yield greater success.
Change mindsets
and build capabilities: Finally in the five successful strategies
is the changing of mindsets and building of capabilities. The CEO or local
director is charged with the responsibility of the development and
implementation of a precise commercial strategy that is legally backed within
such micro market.
Author’s Bio
James Long in this carefully written article informs his reader
on the five successful strategies that
can be employed by any cement company
within the industry, which will yield productive results within its micro
market.
Sponsor Ads
Created on Jan 5th 2018 04:57. Viewed 570 times.