Pakistan Cables, the country’s oldest and most reputable cable manufacturer was established over 5 decades ago in 1953 as a joint venture with BICC. In the subsequent six decades, Pakistan Cables has earned a reputation as a market leader and premier cable manufacturer in the country and a company that does not compromise on quality. Pakistan Cables has been listed on the Karachi Stock Exchange since 1955. In November 2010 General Cable Corporation, a Fortune 500 company and global leader in cable manufacturing invested in Pakistan Cables by taking up a 25% equity stake in the company.
Pakistan Cables is part of the Chinoy Group of Companies, which includes International Industries (IIL) and International Steels Limited (ISL), as well as other interests in diverse businesses.
Pakistan Cables is an affiliate of General Cable, which is amongst the world’s largest cable companies with revenue in 2011 of USD 5.8 billion. General Cable has a global presence with 57 plants in 26 countries including the US, Canada, France, Germany, Spain, Brazil, China, Thailand, South Africa, and the Philippines.
Name of Company Pakistan Cables Limited
Ticker PCAL
Assets (year ended 2013) Rs. 3,592,066
Share Capital Rs. 284,623
Sales Revenue (2013) Rs. 6,164,555
Market Share Price (2012-2013) Rs. 64.8
Comparison
PCAL has no major public limited company as its competitors so its financial statements cannot be compared to that of any other competitor’s financial statements since they are not available. This company is counted as part of Electronic and Electrical Goods Industry in Pakistan. So comparing it with the industry will be not fair but a little comparison yields the following results.
If we take into account the industry average, it s...
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...king an aggressive and proactive marketing strategy. And even with the uncertainty in demand, it has expanded its sales both in terms of value and volume throughout 2011-2013. Moreover, this approach has allowed Pakistan Cables Ltd to win a healthy amount of orders going into the first quarter of 2012-2013.
2013 being the election year, the PSDP (public sector development program) has released 43 percent of its budget in the 1 half of 2013. The company continues to remain enthusiastic in marketing its products. Moreover, the approach of the company is to focus on the development of its core business and to achieve benefits from investment made in wire and cable machinery and other activities.
At present there is excess capacity in the cable industry of Pakistan. Hence, the aspect of additional business remains uncertain, and the margins can come under pressure.
The majority of industry members have formed an association the CCTA – Canadian Cable Televisions Association, to have a unified word when facing regulators, help promote the industry’s services. Table 1.1 and figure 1.1 show that CCTA have through its members a control over more than 70% of the Canadian cable services.
The company has an earnings ratio of 14.02x. It reflects that the company has very high ability of generating profits.
Firstly, based on the profitability, P&G has earned higher profit from each dollar of revenue which is 13.4% compared to C-P 12.9% for the recent year 2013. In addition, P&G also has higher EPS of US$4.04 compare to C-P US$2.41. In contrast, C-P register a Gross Profit of 58.7% and Return on Equity of 91.0% as opposed to P&G’s 49.6% and 17.0% respectively. C-P seems to rely heavily on debt and this has helped to improve the Return of Equity. P&G also has its downside in asset turnover ratio (0.62) and fixed turnover
In a competitive environment where market is changing instantly, organizations are in a fix to design a strategy that could market their products enticing the consumers to buy their products and services. Market is the arena for business gladiators who fight out for maximum share and profitability and this is possible only through effective marketing strategy. Competing in present economy means finding ways to break out of commodity status to meet customers’ needs better than competing firms (Ferrell and Hartline, 2010). The intensity of competition has increased after the introduction of media and internet where the companies present their product in the best way through advertisements, product reviews, blog entries, etc. With the advancement in technological innovations, companies have found various ways of providing services to the consumers in a cheaper and effective way and this has resulted in communication revolution in late 1990’s as the cellular technology was unfold in most of the regions. Singtel Optus Pty Limited (Optus) is one such company that has evolved during this period as a leader in integrated communications and this paper is assumed to make an analysis of the company’s marketing strategy and its financial position in the market industry.
The year is 1952 and a young John Rigas purchased a cable company for a mere $300 in Coudersport, Pennsylvania with high hopes of building the company into a successful family owned and operated business (AICPA, 2005, para. 3); a business that would remain unparallel to the rest of its competition. In the late 1990s his dreams came to fruition; John Rigas, along with a few close family members and investors, purchased Century Communications for $5.2 billion and merged the companies together becoming the 6th largest cable company serving more than 5.6 million subscribers (AICPA, 2005, para. 4). Ensuring that the majority of Adelphia’s voting stock and control of the board remained in the hands of f...
Keith suggested investing more in marketing to find out more about customers’ wants and needs. However, this is not the root of the problem and marketing will not help to solve the current crisis that RLK faces.
According to the Federal Communications Commission, expanded basic cable rates have increased at a rate of approximately 6% per year since 1995. This is double the Consumer Price Index of 2.9%, and does not include charges for equipment, fees and taxes. Therefore, if cable prices continue to rise at double the rate of other consumer goods, it stands to reason that more shoppers will consider alternative sources for their video entertainment. ("REPORT ON CABLE INDUSTRY PRICES"
"USA Network." Cable World 21 Jan. 2002: 28. Business Insights: Essentials. Web. 6 May 2014.
The intent of this paper is to perform an analysis of the cable industry's external environment. The first sections of the document will discuss environmental scanning and define the telecommunication niche that is currently occupied by cable operators such as Comcast. The next section will identify the macroeconomic variables that currently impact cable operators and will compare two variables to two corresponding industry variables. The final section of the paper will identify some of the challenges and opportunities facing the industry. An external analysis of the industry will provide a clear picture of the environment as well as any opportunities and threats faced by Comcast. By understanding the environment, opportunities and threats a company has the ability to create strategies to support its business goals. The primary process by which Comcast will gain an understanding of its external environment is environmental scanning.
We intend to exploit our leadership role by continuing to target and enter segments of the communications market that we believe will experience rapid growth or grow faster than the industry as a whole....
These coal reserves are of great importance to Pakistan. As Pakistan is going through an energy crisis, these coal reserves might the answer to our situation. Load shedding up to 12 hours a day is an everyday affair. Pakistanis annually spends over US$ 600 million to import generators and UPS. Pakistan needs electricity. Renew...
By 2002-03, Indian market has grown highly competitive. Due to fall in ARPU (average monthly revenue per customer unit), players fought to capture new subscribers. With industry consolidation, the focus is switching from having a national footprint to the ability to provide value-added services. Opera...
...re chances of growth and development for the company which is clearly understood through the research done on the Ansoff’s matrix. P&G is much ahead of its competitors and has also won many honors in terms of offering quality and innovative products. The company’s products are also sold by wide variety of retailers around the world and also through many e stores that sells the product online. Finally the company has also got more expansion opportunities which is clearly understood through the Yips model of Internationalization. As the company continues to acquire international brands over the years and succeeds in offering quality and innovative based products to the people all over the world it tend to give a much better completion to its competitors and of course get a wider market share making its competitors give a tough time in the industry.
...ld do so. Since rapid expansion of the cable industry over the past several years and a weak economy had resulted in a temporary oversupply of cable (thus, a number of good businesses were looking for buyers to avoid bankruptcy or liquidation). Industry experts estimated the cost to acquire a cable manufacturer at between $10 million and $15 million. This is quite plausible with OFC’s healthy cash position. This acquisition should occur quickly before the economy recovered and the supply of fiber optic cable came back into balance with demand. This will allow OFC to gain instant access to both single and multi-mode without the prerequisite internal R&D cycle time. It would also pose an excellent value at a time when industry firm price tags are beaten down. These features would aid OFC in protecting its existing niche while expanding into new emerging markets.
Pakistan is facing energy crises due to increase in demand, a poor management and lack of investment in our energy resources. Our energy needs depends upon oil and gas. We have to import about 30% energy in the form of crude oil, coal, LPG etc. [5]