SWOT ANALYSIS

STRENGTHS
i.
ii.
iii.
iv.

One of the major strength lies in the brand equity and the trust build in
the past.
Gyproc boards .
Manufacturing unit is located nearby (Bangalore) which may reduce
the cost incurred in logistics.
Skilled technical team.

WEAKNESS
i.
ii.

Regarded as a premium brand. ( Should introduce economical and

mid range products in order to sustain competition)
Medium and small sized contractors should be properly guided by our
technical team.

OPPORTUNITIES
i.
ii.

iii.

Continuous private sector housing boom.

Mid range products can be introduced ( channels) in order to acquire a
very large volume of customers who were preferring low cost
products.
Should invest more in R&D to introduce more innovative products.

THREATS
i.
ii.
iii.

Competitors.
Local board and channel manufacturers.
Threat from substitutes such as PoP (not predominant in Chennai)
instead of jointing compounds.

PORTERS FIVE FORCE MODEL

The competition in our market is increasing day by day to a very large extend. So it
will be helpful to use the Porters framework in order to analyse the level of
competition.

THREAT OF NEW ENTRANTS- LOW TO MEDIUM

The threat of new entrants is low because of the huge capital.
The entry will be difficult due to start up barriers.
But there is a threat from the already well established players in gypsum
field like cement industry ( for eg., Ramco made an entry).

THREAT OF SUBSTITUTES- MODERATE

 The threat for substitutes is moderate and it very according to the geography.
PoP is used as a substitute for jointing compounds and it is not so
predominant in Chennai.
The substitute for gypsum board is cement fibre boards.

INTENSITY OF RIVALRY- VERY HIGH

The market is highly competitive with key players like Lafarge, USG and
other local players.
Gyproc stands far beyond the competitors in terms of gypsum boards.
But in channels and jointing compounds, the competitors have considerable
amount of market share.

BARGAINING POWER OF THE BUYERS- MODERATE

Contractors(interior) are the consumers and they are of all segments ranging
from small to a very large scale contractors.
In such a case the dominant contractors who are all procuring materials
directly from the company have a considerable amount of bargaining power
than compared to the medium and small scale contractors.
Also switching cost is low but the contractors are afraid to switch the
jointing compound as j&f plays a major role in interior works.

BARGAINING POWER OF THE SUPPLIERS- HIGH

In case of a unique requirement of raw material competitors, the power of
suppliers remains very high.
But with the lot of experience in the field, Gyproc can somewhat reduce the
bargaining power of suppliers while comparing with the competitors due to
huge procurement