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SECTION TWO.
MARKET SIZE: The market size is great
BASIC INFORMATION FROM THE PRIMARY OR SECONDARY
SOURCES.
The first step is to conduct a proper market survey. One
can not start a business without having a good
knowledge of the business. Feasibility study give you the
necessary information on all you need to know about the
business, eg the knowing the right equipment for the
business, cost of labour, the right environment, etc.
The basic information can be sourced through feasibility
studies, reading relevant books, surfing the internet and
visiting some notable block moulding industries for
knowledge.
COMPETITION.
My products are highly needed in the building and
construction sector therefore, we must produce blocks
that are good quality, solid, durable and strong products
compared to that of my competitors.
The production concept will be applied as it says
consumers will favour those highest quality products that
are widely available and at low cost.
SWOT ANALYSIS OF BLOCK INDUSTRY BUSINESS
To plan marketing and management strategies for businesses, it is important to
perform a situations analysis. One such analysis, a SWOT analysis, examines
"strengths, weaknesses, opportunities and threats" within a particular business or
field. The cement industry is an example of a field for which a SWOT analysis would
enhance marketing and management strategies.
Strengths
The cement industry has many strengths to be considered. Cement is, literally, the
building block of the construction industry. Almost every building constructed relies on
cement for its foundation. The block moulding business is a $10 billion industry.. There
is also a strong reputation behind the block industry. Cement is a solid material and
consumers rarely have complaints about the product.
Weaknesses
The cement block industry is not without its drawbacks. The block industry relies on
construction jobs to create a profit. But the block industry heavily relies on weather.
About two-thirds of cement block production takes place between May and October.
Cement producers often use the dry seasons to produce and stockpile cement, to
meet demand. Another weakness is the cost of transport; the cost of transporting
cement is high and this keeps cement from being profitable over long distances. In
other words, transporting cement costs more than the profit from selling it.
Opportunities
The block industries has opportunities as well. One such opportunity is the block
industry's efficiency. The block industry has recently streamlined its production efforts,
using more advanced equipment for its production which encourages expansion. The
cement industry has also invested about $6 billion in expansion efforts to meet unmet
cement needs. Projections show that by 2025, the cement industry will have 25
percent more production capabilities .
Employment creation.
Porverty eradication.
Threats
The nature of the economy have uncovered a number of threats to the
cement block industry. The block industry greatly relies on construction.
The current economy has lessened the number of construction jobs,
which in turn hurts the block industry. The cement block industry controls
the majority of the Nigeria market, but not all of it.
Expensive labour.
Government policies.
ENVIRONMENTS
The concrete block moulding business is not one you can run a
The block industry SWOT analysis indicates that the industry has been greatly
affected by the economic downturn. However, with investments, the industry believes
it can rebuild and increase production. This will lessen the need for foreign imports.
The industry has become very renationalized because of the high costs of transporting
cement. However, the regional market caters to all types of jobs, from residential to
commercial projects.