AMBUJA CEMENTS Ltd

Niranjan Jency

Corporate level strategy

Growth strategy of GACL : get volumes & achieve dominant market shares expand its reach to all the boundaries setting up plants acquiring competitors

 The most successful of GACLs innovative strategies of cost cutting - idea of sea transportation.

Fuel:- fuel strategy was also cost cutting factor

Power:- they established their own captive power plant

STRENGTHS
Brand name Most profitable cement co. in India Lowest cost producer Sea transportation Captive power plant Fuel efficiency Eco-friendly

WEAKNESS
Need of more market expansion. Need of international marketing Not able to use foreign technologies fully

OPPORTUNITIES
Acquisition of DLF cement & ACC s stakes With increase in G.D.P. growth rate country will need more roads ,ports , houses etc. Indias population affect demand of cement - there is no substitute for cement

THREATS
Other cement manufacturer company ie ACC,L&T Production cost increases :- due to increase in price of power, coal, diesel.

VRIO MODEL
VALUES : efficient management system good use of technology reputed position in the market good brand value good distribution network

RARE :- Not rare IMITABLE :- yes ORGANIZATION :- supported

COST LEADERSHIP OF GACL

productivity improvement & cost cutting measures won various awards for management excellence, quality, & environment management GACL's modern plants large kilns high degree of automation low manpower cost

low power tariff and low fuel costs GACL substitutes like crushed sugarcane plants above 100% capacity utilisation pioneered use of ship transportation Low-cost funds cut cost of capital.