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Trakya Cam 5 Forces Analysis

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Submitted By zkafkas
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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 (Organic & Inorganic)
 Profitable and Fast Growth Beyond Regional Leadership
 Wide Product Portfolio with Value Added Products
 Product Innovation and Advanced R&D
 Effective Total Cost Management
 Environment & Sustainability
 Market & Customer Focus
PORTER’S 5 FORCES ANALYSIS FOR TRAKYA CAM SAN. A.Ş.
Threat of new entrants-Low Pressure
Entry barriers are relatively high for the flat glass industry due to the high cost of manufacturing investment. There is only China threat for the sector which effectuate only 8% of European sector. Four companies meet majority of the demand in the world. 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

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...MANAGERIAL SKILLS and STRATEGIC LEADERSHIP ANALYSIS OF SISECAM-TRAKYACAM and FLAT GLASS INDUSTRY OF EUROPE BY PORTER 5 FORCES MODEL Trakya cam has been established in 1978 under SİSECAM Group in order to feed local market and wordwide demands of Flat glass , Automotive glass, Solarglass and Home appliance glasses. Over % 80 of Flat glass is being used for construction and rest is used for other apliane like Solar, automative and Home appliances Trakya cam operates with 4 float lines in Turkey and 2 lines in Bulgaria and it is in the top 5 companies in the World. Threat of New Entrants /Potential Competitors –Low Pressure The major competition is between Asahi Glass, NSG/Pilkington, Saint Gobain, Guardian and Sisecam. The establishment of a new float line costs approximately between 70 mil. € and 200 mil. € according to the size and also demands upgrades and repairs with a cost of 50 mil € during its lifepan of nearly 15 years. This huge investment keeps the new entry barriers relatively high. This condtion is also keeping the major competition between the top 5 companies continuously. Threat of Substitude Products-Low Pressure There is no substitude of flat glasses. In some appliances plastic can be used but it can not be a called a substitude because of the very low apllicabilty level . The Bargaining Power of Buyers- Medium Pressure % 70 of the flat is sold to processors whose process and sells the to the individual buyers. Since the flat glass produced...

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