Egyptian steel market in specific is characterized by lack of effective anti- trust laws to control monopolistic practices and protect end the consumers. The Egyptian steel scenario does not only present an economic treat affecting steel prices and market mechanism and it has also questioning a political dimension monopolies influence on the legislation of new anti- trust laws. The Company has been protected by highs tariff. Egypt has been experiencing challenging economic, social, political disturbance. There was a fast expanding population, high consumption rate and economic deficit. The market is segmented according to steel type and there is a dominant steel producer acting as a monopoly, in the market. Due to barriers to entry in …show more content…
The Company was founded by Armed Abou Hashima and Qatari investor Sheikh Mohamed Abou Suhaim Al Thani. The Egyptian steel industry is an interesting case to analyze because it is a strategic source of raw material for other industries, such in construction and comprises a large portion of Egyptian industrial .It is characterized the market segmentation, a dominant market position, and efficiency elements. It is between the market monopoly and market efficiency as the local industry is constrained by barriers to entry and international factors. The Egyptian steel sector relies heavily on rebar’s that account for around 80% of all steel sales in Egypt. For production of rebar, steel billets are used as raw materials. Local billet in Egypt is not sufficient to meet the demand of rebar manufacturer. Egypt has 53% concentration of iron while the industry needs at least 73% concentration of iron .Types of steel produced in Egyptian market consist of three kinds of steel. The carbon steel, stainless steel and special …show more content…
The carbon steel compose of long and flat steel, and long steel consist of many types such as reinforced bars, spring flat bars, and bulb bars. The flat sheet also consists of coils and sheets. The stainless steels compose of long and flat sheets, the long steel consist of bright shafting bars, tubes, and pipes. The flat steel consists of coils and sheets decorative. The special sheet, include the alloy steel,bimetal,heat resistant steel, steel fibers, high speed steel and mold and tool speed. Ezz-Dekhela Steel (EZDK) Ahmed Ezz ,was chairman in (2000), the company control about 54% of total market potential capacity and 61% in the market share of EZDK’s.The goal of this company to maintain its dominance over the Egyptian steel market share by holding on increasing market share. There are private producers of steel such as Kouta Steel Group, Suez Steel, Beshai Steel, Aswan for Iron, and Arab Steel Factory. The monopolistic performance of the entire industry of EZDK has a dominant monopoly power of the Ezz Dekhela
Also, the competition between existing players in this industry is high. There are about 619,000 metal enterprises in the USA in 2005 (IBISWorld, 2007).There are many companies that produce different kinds of metal products in the market. Besides, the bargaining power of buyers is high because product difference for the buyers of the metal products is small. It is not easy to differentiate the quality of one metal product from another. In addition, the cost of switching for the buyers is low. The number of substitutes of metal products is also high thus the buyers have great bargaining power.
For decades, the steel industry has been one of the toughest markets on a global scale with most steel corporations ending up in bankruptcy. Foreign and domestic competitors, management issues, environmental issues, political agenda’s and technology have had much to do with the demise and more so of the success of the steel industry. The issues that this case focus on Nucor Corporation was of:
Evaluate the results and determine whether the selected steel grade is viable in meeting Objective 3
Founded in 1985, Multigroup is one of the largest producers of steel products in Central America. Multigroup, a privately held company, specializes in the production and commercialization of Steel and it counts with more than five thousand different products. With leading brands in most of its markets, Multigroup operates in Mexico and Central America and exports to more than 15 different countries around the world. The company has its corporate offices in Guatemala city, Guatemala and has more than 1500 employees, 6 factories and 30 stores around the region. In 2013 Multigroup’s revenue exceeded US$100 millions from which 70% came from abroad.
These industry possess characteristics that protect the high profitability of firms, with that said, the threat of entrants within this market is relatively low. This makes entering the market difficult for new startup companies due to the high levels to entry barrier. One of the factors contributing to the barriers to entry is the high capital requirements that are needed in order to compete in the market. Large investments are required in acquiring facilities and maintaining them along with purchasing the expensive equipment relative to manufacturing welding products. Purchasing the equipment is not enough but new companies are also required to develop the advanced technologies before effectively competing in which is really time consuming. With these asset specificities, potential entrants are discouraged to commit to obtaining these specialized assets that have no other means of use or profitability if the venture fails. When existing firms acquire these specialized assets, they are more inclined to resist efforts by other competitors from stealing market share, therefore enhancing the competitive disadvantage for new entrants.
The Political, Social, and Legal Environment of Business. Case Study Analysis: Union Carbide Corporation and Bhopal. A single slip in action may cause lasting sorrow. A slight mistake in operation at a Union Carbide pesticide plant in Bhopal, India, caused a lot of deaths and injuries. What a tragedy it is.
Advancement of processing techniques in late 1960s and early 1970s led to the fabrication of modern duplex steels. Introduction of vacuum and argon oxygen decarburization (VOD and AOD) was the main factor that led to this massive development in duplex steels during this period. By the advancement of these techniques it was possible to achieve steels with low carbon content mixing with high nitrogen and chromium contents in balance with austenite and ferrite. This eliminated lot of shortcomings in old duplex steels. The alloy content provided a resistant to corrosion while duplex microstructure contributed to prevent chloride stress cracking under severe conditions. And these duplex steels possessed good weld ability also.
In the early part of this century was a time when industry was booming with growth around the installation of major railroads. With this growth came the transatlantic cable, the telegraph, and a whole lot of steel. Steel would be needed in the construction of these new transportation systems and communications were now possible between businesses and industries. (Wren, 2005)
The group is also one of the largest manufacturers of small and medium sized steel forgings and the second largest forgings manufacturer in India.
TATA Steel. "The Facts: Behind the Figures." The Whole Story: From Cradle to Grave (2011): 10-13. Print.
Ali sought to achieve a degree of autonomy from the Ottoman Empire and expand the rule of Egypt, both of which required military reform. In order to finance his efforts, he had to expand the Egyptian economy. Egyptian exports thrived on the back of cotton, which Ali attempted to consolidate into a government monopoly. Egypt’s focus on cotton production made it an export-heavy territory that was dependent upon European manufacturing imports from the West. In order to facilitate its exports, a robust transportation system was necessary.
Stainless steel is a type of alloy that has a very strong lattice structure (an arrangement/ shape of the crystals or other objects) which in some case can be more beneficial than others depending on the type of application it may be used for. In many cases this structure will make the material more suited to being used in engineering applications such as tools for instance a hammer (stainless steel alloys) , also they can be used for gears, engines, electrical motors and hydraulic systems because the structure makes the material so strong. So when the arrangement of the structure is as above it makes the overall material even stronger which makes it a good for all the applications stated above. I believe its strength and durability are its main properties as these are commonly needed in the engineering industry, although it is also very well known to be used for its corrosion resistance as it is resistant to many types of corrosion. It is used for these properties because the components such as gears need to be strong in order to keep transferring and altering the rotary motion and torque exhibited in the machine that it may be used in, durable to withstand any loads or pressure put onto it and also corrosion resistance to give the components a bigger life span and increase its rate of work throughout its required use.
As recently as six years ago, while investors were still in thrall to a dotcom bubble that had yet to burst, steel was derided as one of the last bastions of the "old" economy. Many firms in the industry were state-owned or heavily protected by governments keen to preserve assets deemed vital to national interests. Globalization had left the steel business behind. It is a measure of the changes that have swept the business since the internet bubble popped that last week Arcelor, a company created through a 2001 merger of the top French, Spanish and Luxembourg steelmakers, made a hostile bid of C$4.
The companies I have selected for this assignment is Malaysia Steel Works (KL) Bhd (5098) and Kossan Rubber Industries Bhd. (7153), both of the company is from industrial products sector and its share is traded in main market.
In past few years, companies and industries of various sizes have become aware that they need to improve business processes such as product development, order fulfilment, planning, distribution, and customer service. So everybody is now focusing on doing process improvement or redesigning.