Top Innovative Approaches to Improve Your Cement Companyby Pooja Late so cut
Even 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.
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.
Created on Jan 5th 2018 04:57. Viewed 394 times.