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Porter 5 Analysis

In: Business and Management

Submitted By probase
Words 433
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Trakya cam has been established in 1978 under SİSECAM Group in order to feed local market and wordwide demands of Flat glass , Automotive glass, Solarglass and Home appliance glasses. Over %
80 of Flat glass is being used for construction and rest is used for other apliane like Solar, automative and Home appliances
Trakya cam operates with 4 float lines in Turkey and 2 lines in Bulgaria and it is in the top 5 companies in the World.
Threat of New Entrants /Potential Competitors –Low Pressure
The major competition is between Asahi Glass, NSG/Pilkington, Saint Gobain, Guardian and Sisecam.
The establishment of a new float line costs approximately between 70 mil. € and 200 mil. € according to the size and also demands upgrades and repairs with a cost of 50 mil € during its lifepan of nearly 15 years. This huge investment keeps the new entry barriers relatively high. This condtion is also keeping the major competition between the top 5 companies continuously.
Threat of Substitude Products-Low Pressure
There is no substitude of flat glasses. In some appliances plastic can be used but it can not be a called a substitude because of the very low apllicabilty level .
The Bargaining Power of Buyers- Medium Pressure
% 70 of the flat is sold to processors whose process and sells the to the individual buyers. Since the flat glass produced by each competing company is nearly same because of the industrial specifications , buyers can easliy switch between suppliers if their demands like, on time delivery, quantity and price are not met.
The Barganing Power of Suppliers- Low-Medium Pressure
The flat glass is produced by sand, soda ash, dolomite and limestone. After the propar mixing this batch is taken to very high temparatures in the furnaces in order to produce the flat glass. The ingredents that has been listed above are very easily accessible and they are not expensive and can be supplied from many different suppliers.
Only bullet point is the natural gas that is being used to keep the furnaces at high temperatures.
Natural gas costs are are over %71 of all costs for a float line.
Competitive Rivalry
As indicated earlier the major competition is between Asahi Glass, NSG/Pilkington, Saint Gobain,
Guardian and Sisecam. All the firms are currently making investments for new line establishment in new regions in order to gain competitive advantage. Since a new flat line establishment is too expensive, firms tend to buy local lines in different regions.…...

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