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Trakya Cam 5 Forces Analysis

601 words - 3 pages

Trakya Cam San. A.Ş. manufactures high-quality float glass, frosted glass, coated glass, energy glasses, home appliances glass, laminated glass, mirror glass, automotive and encapsulated glass for domestic and international markets.
Most of the world’s float glass production is used in buildings, constituting c.83% of the global glass usage. In building products, basic glass can undergo two or more stages of processing before being installed as original or replacement windows and glazing systems. While 40% of the float used for buildings are used for new construction, 40% is used for refurbishment and 20% is used for interior design. Automotive market demands 7% of the total supply. Lastly 10% of the flat glass are used in special applications, solar energy being the most notable one.
Vision:
To be a fast growing global flat glass company with its strong brands and innovative solutions
Strategy:
 Globalization ...view middle of the document...

In terms of high quality float glass alone, the industry is relatively consolidated, with four companies accounting for the majority of glass capacity. Of the four companies two of them are from Japan, namely, Asahi Glass and NSG Group, Saint-Gobain is based in France and Guardian is the American producer. Şişecam’s flat glass arm Trakya Cam has a total production capacity of c.1.7 mn tons, meeting nearly 14% of the European flat glass demand.
Threat of substitute products or services: Very Low Pressure
There is no substitute for flat glass. Plastic can be considered as a substituted in some cases but it is not natural and applicable in every industry like glass.
Bargaining power of customers (buyers): Medium Pressure
In European Market, sales of Trakya Cam San A.Ş.is directly to distributors with 70% share which are mostly wholesaler and processors. 20% of the customers are the end customers. The customers have almost the same profiles due to the industry specifications.
The Bargaining Power of Suppliers: Low Pressure
The economics of the continuous-flow float operation require a high capacity utilization rate – typically above 70% – before a plant becomes profitable. Energy and raw material costs are significant, representing almost two thirds of the production costs. Glass is relatively heavy, making distribution costs significant; they typically represent around 10% to 15% of total costs.
The main ingredients for flat glass include sand, sodium sulfate, sodium carbonate and dolomite. The raw materials are mixed in a batch process, then fed together with suitable cullet (waste glass), in a controlled ratio, into a furnace where it is heated to approximately 1500 °C.
For the reason that the raw materials are accessible, the suppliers are not so concentrated or differentiated. They can be supplied easily. And additionally, Trakya Cam San. A.Ş: has their own suppliers.
Intensity of competitive rivalry: High Pressure
Currently, the main competitors are Asahi Glass, NSG Group, Saint-Gobain & Guardian which also have a wide range of qualified products under their brands in European Market. These firms have the world power by making new float line investments.

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